Prosper Allowing Choice of Collection Agency
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I decided to sign up with Prosper at the same time I am waiting for my Lending Club account to be tied to my checking account. Interestingly, Prosper allowed me to select my collections agency. The sign up process gave a choice of two companies Penncro and Fristsource and listed their collections statistics which I have posted below. Firstsource does not have a great deal of data history yet since they have only been sent a total of 77 loans, but the results under credit ratings of B-D are promising. I have summarized some of the results in the table below for easy comparison.
| Lifetime Collection Rates “Brought Current” by Agency | |||
| Agency | Rating AA-A | Rating B-D | Rating E-HE |
| Firstsource (new) | 0%* | 21.4% | 14.9% |
| Penncro (original) | 19.2% | 14.7% | 14.2% |
|
*Firstsource only sent two AA-A loans |
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Click each graphic to expand and see the full collection performance statistics.
Prosperous Land and Rate ladder have both recently mentioned the communications to existing lenders about testing a different collections agency at Prosper. The above charts must be the initial results of those tests.
Correction (11/19/2007): Mike at Prosperous Land pointed out that the letter recently received is about a new 3rd collection agency. He has more information on collections in the article just posted about adding to the collections effort.
I like how Prosper seems to be open about the data that they provide.
Edit: A few hours after posting this, I realized that the numbers are posted on Prosper’s collection agency page so maybe this is not so new.
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The choice between Penncro and FirstSource has been in place for a while. The testing thing referred to on my blog and RateLadder’s is a new, 3rd collection agency. Prosper hasn’t given any indication on whether it’ll be in addition to or in place of one of the current two.
Thanks Mike for the correction. The stats on Firstsource were so slim that I assumed that it must be the new collection agency. I will add a correction note.