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Author Topic: Note Trader Platform To Be Discontinued

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Note Trader Platform To Be Discontinued
OP: September 28, 2016, 11:00:00 PM
Well this is fun!

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T
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Note Trader Platform To Be Discontinued
#1: September 28, 2016, 11:00:00 PM
Yes, I got that from them as well.  Not sure how legal this is.  I use it constantly.  I only signed up for Prosper because they had the "exit" ability on notes like LC.  Prosper is a total piece of garbage anyways.  Worst user interface I've ever seen from a company in quite some time.

I'd be interested in joining a class action suit against them, to stop them from attempting this.  Unless, they wrote somewhere they could discontinue at anytime when I signed up...I don't see how it is legal to change business practices that are so vital to an iliquid market.  In a sense, they duped me under false pretense.   They claim nobody uses it...what a bunch of hogwash.  In fact, I bet they were having a hard time issuing new notes because everyone was on Folio instead.  I haven't participated in new issues in 6 months with them.  I use Folio 100% when it comes to Prosper.
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T
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#3: September 28, 2016, 11:00:00 PM
Thanks Fred for your quick reply.  I figured there was some legal mumbojumbo BS buried in there.  Just another reason why Prosper trails Lending Club, and will continue to fall further behind until it fades into the long list of failed businesses.  I want out now!

Thanks again for your research and taking the time to respond, Fred.
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C
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Note Trader Platform To Be Discontinued
#4: September 28, 2016, 11:00:00 PM
Ugh, got this today. I had been thinking about liquidating my Prosper holdings, but now they've forced me to use Prosper (and complicate my tax returns) for the next 5 years. Pretty ridiculous. I'm certainly going to stop purchasing notes on Prosper.

The "low volume" explanation is pretty tone deaf. It's like Toyota telling me they're taking the seat belt out of my car because they've noticed that it doesn't serve a function for the majority of drivers' time on the road.
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Note Trader Platform To Be Discontinued
#5: September 28, 2016, 11:00:00 PM
I like your analogy.
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Note Trader Platform To Be Discontinued
#6: September 28, 2016, 11:00:00 PM
I never used folio actively, but it was nice to know it was there in case I needed to exit for some reason.

Here's hoping there is another solution coming up - there have been rumors of people trying to make a better second market for the industry. Of course Orchard has one for institutional players, not sure that would open up to retail - likely more regulatory headaches than it's worth.

A liquidity solution would be nice, even if it's "I need to liquidate my entire portfolio" and they some how facilitate your entire portfolio sale to some hedge fund that is purchasing.
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Note Trader Platform To Be Discontinued
#7: September 28, 2016, 11:00:00 PM
The secondary market requires broker-dealer license. It is not easy to get such license. See how long it is taking Orchard to get such approval. Folio has the license. Prosper excuse of low volume is laughable. They can't expect high volume without providing data, tools and support to the ecosystem. Anyway, the current Prosper management was never interested in direct retail. This may be start of phasing out of direct retail participation on Prosper platform.

from: Prescott on September 29, 2016, 06:10:31 PM
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#8: September 29, 2016, 11:00:00 PM
It takes about 6 months to get a license (Finra actually sets a deadline, but they do like to give themselves extensions). I've been through it twice and currently going through it again.

I agree they have really only used retail for marketing points. If they do drop retail, I hope they offer an option to purchase out our notes rather than force us to wait for it to run down. But I'm not sold their plan is actually to drop retail.

If anyone is interested in building a second market for retail, we should connect - I think there's opportunity there
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#9: September 29, 2016, 11:00:00 PM
Agree. I doubt that they will drop direct retail completely just yet. But, the latest disclosures from Lending Club about size (~150K, ~$400M) of retail lenders is telling how small this segment is even after a decade. Platforms seem to be more interested in acquiring retail investors through funds/ETF/brokerage "consolidated" channels now. I expect platforms slowly moving away from retail lenders and even small institutional lenders directly lending on the platform.  Industry is in flux. It needs different sources of capital but direct retail lending may not be that attractive to platforms.

Last year someone reached out to me who was looking into setting up secondary market for retail lenders. I think he might still be pursuing it. If you want I will be happy to connect you with him.

from: Prescott on September 30, 2016, 02:37:19 PM
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#11: September 30, 2016, 11:00:00 PM
Prosper, in my opinion, is a poorly lead company.  The home page is laughable...all those pretty colors under the rainbow, and it lacks basic functionality.  What a waste of development time and money.  The Folio site is cumbersome and time consuming to use.  No wonder nobody uses it.  Like Gatsby mentioned, there is no link on their new home page.  I think if their ultimate goal is to phase out the individual investor, then they are doing it in a very ungraceful way. The customer service department is rude anytime I ask a question, and thats if they ever bother answering the question to begin with.  Never have they answered within a timely manner (via email)

I've felt for a long time that LC would ultimately phase out the individual investor, leaving Prosper as the viable option...which would be a boon for Prosper.  But as so often witnessed in companies, radical decisions are not thought through with long term vision and consequences in mind.  I would never shut out the individual investor, but maybe raise the minimum investment.  To limit sources of funding, is asking for potential problems down the road.
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Note Trader Platform To Be Discontinued
#13: October 04, 2016, 11:00:00 PM
If a suit goes forward I'm certainly interested in participating.

Nobody used Folio amirite guys? 22,992 Notes... nobody

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#14: October 05, 2016, 11:00:00 PM
Right guys? 22,992... that's practically nobody. No way anyone would be interested in a class action lawsuit. That's practically no money... minimum $574,800 is practically nobody. Nobody is interested in well over half a million in positions. WHAT A WASTE OF TIME LAWYERS!
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