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Legal Test Update

by Doug Fuller on 05/9/08

I wanted to give everybody a quick update on collections. I know that many of you are anxious for an update on the debt sale. Regretfully, I have nothing to tell you yet. I expect to have another update on this subject early next week (Monday or Tuesday).

In the meantime, I want to give you an update on the accounts in the legal test. We have obtained service on 12 of the suits – and have sent “proof of service” back to the courts. Another 41 have been formally entered on the dockets of the court in and are currently out for service. I would believe that some number of these have been served, but we only have a “batch” interface with the process servers, so I don’t have real time date on this. Finally there are 7 suits on which we are waiting for the “file stamped” copy back from the court to send out to service.

At this point, we keep pushing for service. Once we have received proof of service, the minimum time to move for default judgment is 30 days. As a rule, the law firm will wait until 45 days after the service date to file a request for default judgment. Thus far, none of the defendants have “answered” the suit.

On other topics, I will be making my monthly trip to AmSher on 5/15 & 5/16. I will dedicate another posting to the current state of collections and AmSher after I return.

Doug Fuller is the Vice President of Operations at Prosper.

  • xraider

    Doug, again, thanks for the update.

    In California, a defendant has 30 days to respond to the complaint after service is made. Proof of service has to be on file and AT LEAST 30 days must elapse after service before a request for default is made. (The time runs from the date service is made, not from the date the proof of service is filed.) I think it’s safe to allow 45 days, since a court may be reluctant to enter a default after 31 days.

    Why are you “pushing” for service? You would think your law firm would be eager to serve these things. Are you paying the lawyers hourly or contingency? Either way, they should be motivated to get service made.

    Any news on amending the form promissory note to include attorneys’ fees on future loans?

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    thanks for the info on CA…

    I may be mistaken but I think Doug was trying to express the phase of the legal test.

  • biblio1

    Thanks xraider for the info on CA as all of the defendents served are in CA.

  • Yankeefan

    A couple of Mondays and Tuesdays have come and gone, along with a few other days. Any update on loan sales yet?

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