Skip to main content

Author Topic: "Recently came to our attention" ... net annulaized returns not accurate

k
  • Posts: 9
Right  ::) I'm sure they just recently discovered this as it's been discussed around here for months.

Important Account Update
It recently came to our attention that the annualized net return numbers displayed on your account overview page were inaccurate due to a system error. This error only affected the Annualized Net Return and Seasoned Annualized Net Return numbers and has now been fixed.

This error did not impact any other part of your account, including payments, deposits, monthly statements, tax documents, and note and loan level information - including estimated returns.

We sincerely apologize for this error. If you have any questions, please email us at investorquestions@prosper.com.
  • IP logged

E
  • Posts: 2
Just got it too. My rate has gone from over 10% to 8%.
  • IP logged

n
  • Posts: 18
If this isn't the final nail in the coffin, I don't know what would be.  Misstating returns to investors is huge SEC violation.
  • IP logged

  • *****
  • Administrator
  • Jr. Member
  • Posts: 67
Um this is kind of a big deal...
  • IP logged

T
  • Posts: 6588
My return went from like 14% to around 7%.  I stopped reinvesting and started transferring cash out about 4 months ago when I first investigated this (after somebody around here mentioning it).  Shame on me for just assuming that I was getting a higher rate but shame on Prosper x 1000 for misleading investors.  As soon as I saw that I knew this wasn't a company I want to do business with.  I still have 4.5 years to let the rest of my loans mature but as I get money back it gets transferred straight out.
  • IP logged



T
  • Posts: 6588
Also I'm submitting a complaint to the Consumer Financial Protection Bureau and suggest you all do the same.
  • IP logged

T
  • Posts: 6588
Better hurry before Trump get rid of it. 

Prosper just hired a new CFO. It's likely he discovered the error......or wouldn't go along with the misstatements.  CFOs are accountable (read-would be thrown under the bus by the CEO). Timing make sense.  Really sucks for him to be put in this position-I've been there.
  • IP logged

G
  • Posts: 11
I think they used to explain the formula somewhere or maybe that was LC. Can't wait for my remaining loans to mature and never have to hear from Prosper again. Have you seen that returns graph on their site..scary stuff!
  • IP logged

T
  • Posts: 6588
I'm not sure that I have any proof that it showed 14% as it doesn't appear to show it on the statements.  I just know when I logged in I would always see crazy high numbers.  I think it was around 16% before I stopped reinvesting my principal into new notes.  I guess i should have screen shot the number back then.
  • IP logged


P
  • Posts: 26
I lost about 4% on each of my two different accounts I manage.
  • IP logged

k
  • Posts: 3
Hello,

Registered just to discuss this topic.

They sent me an e-mail actually showing me their errors for the past 8 quarters. That was nice of them to provide evidence in an e-mail for the class action lawsuit that is probably already being worked on. In the support case, they asked me if I would like to be contacted by a senior person via phone, which I suggested is a wonderful idea.

My returns went down 4%. I thankfully only purchased 3 year loans, but I am now stuck with below average returns on those loans too. I am going to demand they at least cash me out of those ASAP. We will see. Wiki tells me the are regulated by the SEC, so good luck to them.
  • IP logged