I'm a delinquent borrower of Prosper and my debt was sold in December 2007. I finally secured a new job in mid February 2008 (a drastic cut in pay, but a job non-the-less.)
I never received a notice letter from Prosper or the debt buyer Alliance Credit Services, but approximately four weeks into my new job I did receive a telephone call from ACS's representative law firm Hunt & Henriques out of San Jose, California.
The woman (who finally admitted she was not an attorney but a collections specialist at the firm) was degrading when she stated that I had never made a payment. I told her she was misinformed that I had made payments for six months prior to losing my job. She was adamant that I had paid nothing. I offered to make $400 per month payments on the $5000, but she flat out turned me down saying she was going to note that I had refused to pay.
On the second, third, fourth and fifth calls between us (she called me and I called her), she made sure to repeatedly tell me that 25% of my wages were going to be garnished. I was crying and trying to explain to her that I'm a single mom and that offering her $400 per month, if she had accepted it I would have been a hardship and left me with only $115 a month for groceries.
When I stated in our last call that I felt I should see an attorney, she advised me not to and use whatever money I would use on an attorney toward my debt.
I'm writing to let those of you that we (myself and others that hit very hard times and defaulted), that it may not be that we refuse to pay the debt, but the hard core collection law firms refuse the payments when we're finally in a position to begin trying to get caught up on bills.
I feel very badly that I was unable to make payments to the individuals at Prosper that put their faith in me. I feel bad that I had to relocate and live with friends because my company didn't even pay into State Unemployment and I had not a dime to live on. I feel bad my daughter had to deal with moving, changing schools, not having money and having to be on a state funded lunch program. I feel bad that friends didn't call me to do things with them any more because I couldn't afford to even pitch in toward a video rental.
But feeling bad about all these things were nothing to compared to what I felt at the thought that this law firm is threatening me after being brought to my knees and staying there for nearly a year. I finally get to where I think I might be able to stand up straight again and they refuse my $400 a month payment offer because they want $550 for 12 months so that it's paid in full in 12 months.
The sad part is that 25% of my paycheck is less than what I offered. They would have been better off to accept my offer.
How does this benefit Prosper's lenders or their clients
Los Angeles, California