18 October 2017
Register now

P2P lender Prosper in firefighting mode following botched platform switch

25 May 2010  |  8013 views  |  0 network card and network cable

US peer-to-peer lender Prosper is still struggling to reconcile user accounts three weeks after botching a major upgrade to a new loan servicing platform.

The switchover to the new platform was a major project that involved the integration of more than 2 million loan based transactions.

What were initially reported as a number of anomalies and discrepancies after the new platform went live in early May have escalated into a full-time troubleshooting operation, with users unable to access their accounts online and incorrect disbursements made to some to some lenders.

In a blog update to customers, Prosper apologises for the "frustration and inconvenience many borrowers and lenders have experienced".

Most of the problems related to the interface between the Prosper Web site and the new loan servicing platform, which resulted in loan data being inaccurately displayed to users accessing their accounts and, "in a limited number of cases" triggering incorrect payment disbursements to lenders. Prosper says these issues have been resolved and corrections will be made to users' accounts by the end of the next week.

Loan performance data, which is used by investors to determine what kind of loans to take out and analysts to determine the company's growth in loan origination, has been offline since the switch and is unlikely to be restored until early June says the company.

The fiasco hit just two weeks after the company raised $14.7 million in new funding from investors. It follows a difficult two years for Prosper, which only resumed lending last July after being forced to close its doors to new loans the previous November in order to register its business with the SEC.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Prosper closes in on series d funding

Prosper closes in on series d funding

01 April 2010  |  8025 views  |  0 comments
Prosper calls on Americans to share debt stories

Prosper calls on Americans to share debt stories

05 March 2010  |  5449 views  |  0 comments
Prosper hires head of Citibank Sweden

Prosper hires head of Citibank Sweden

03 December 2009  |  6410 views  |  0 comments
Prosper raises $1 million in debt financing

Prosper raises $1 million in debt financing

11 November 2009  |  6169 views  |  0 comments
Prosper moves into consumer financing with Zero Motorcycles

Prosper moves into consumer financing with Zero Motorcycles

05 November 2009  |  7860 views  |  0 comments
Prosper resumes lending, again

Prosper resumes lending, again

14 July 2009  |  5675 views  |  0 comments
Prosper shuts down again

Prosper shuts down again

13 May 2009  |  5994 views  |  0 comments
Prosper resumes lending; opens market to financial institutions

Prosper resumes lending; opens market to financial institutions

28 April 2009  |  6657 views  |  0 comments
Prosper pays $1 million to settle securities violation

Prosper pays $1 million to settle securities violation

02 December 2008  |  6984 views  |  0 comments
Prosper stops taking new loans

Prosper stops taking new loans

17 October 2008  |  6806 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.innotribe.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15259 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8459 views comments | 16 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7953 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7423 views comments | 13 tweets | 8 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6580 views comments | 8 tweets | 16 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job