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Important Notice for Lenders Residing in Pennsylvania

by Prosper on 09/15/08

We have made the decision to discontinue accepting new lender registrations, and new bids from existing lenders, from residents of the Commonwealth of Pennsylvania. Our decision to make this change was based on our ongoing discussions with regulators in Pennsylvania, which led us to believe the change was necessary to comply with their current interpretation of their state regulations.

We have notified existing lenders residing in Pennsylvania of this change via email. Existing lenders residing in Pennsylvania will continue with their existing lender agreements, have their existing loans serviced, and be able to transfer funds out of their Prosper account. However, they will not be able to place new bids on listings or transfer money into their Prosper accounts.

This change does not affect borrowers residing in Pennsylvania, who remain free to create loan listings on Prosper.

We apologize for any inconvenience this change may have caused. We will continue to keep lenders who are directly impacted as well as the broader Prosper community posted on any future developments related to this matter. We hope to make Prosper available to lenders in Pennsylvania again soon.


  • http://pa4prosperlending.blogspot.com/ Tony

    Havrenko – Great suggestion! -setting up a group on Facebook. It’s done! The group is called Pennsylvanians for Prosper Lending.

  • Christian

    This is very surprising. Can you please provide more detail as to the regulations in question?

  • Chad

    Just another tick under the why Pennsylvania sucks column.

  • Stephen Dieringer

    I may be wrong, but I have yet to read, or hear about coverage of this in any newspapers in my area (Philly, Chester or Lancaster counties).

    Interesting.

    So … I sent this e-mail to Philly.com, Daily Local, Intelligencer Journal, and Lancaster New Era.

    Subject: suggestion for news story / report

    Perhaps you would consider doing a story / report on the fact that Pennsylvanians are not allowed to be lenders on any of the P2P lending sites such as prosper.com.

    This is a link that was sent recently to all lender members on prosper.com,
    http://blog.prosper.com/2008/09/15/important-notice-for-lenders-residing-in-pennsylvania/

    You may also find some useful info at
    http://pa4prosperlending.blogspot.com/

    Thanks

    Short & to the point. I’ll be curious to see if anything becomes of it, or if I get a reply.
    It may be something to pursue across the state.

    Any thoughts?

  • Kathleen MacDonald

    I recently was approached from people in Canada to invest in medical equipment. When I told them that I was in Pennsylvania they said they could not do business with me because of the rules in PA. This was a surprise to me. Apparently there is some policy in PA that keeps us from investing–at least in certain things. And –you’re right–this sucks!!

  • Stephen Dieringer

    Is there any chance that we could get an update as to where this stands?

    I would like to think that Pennsylvania lenders are still considered “Members” of Prosper.com.

    While I’m not expecting to hear about any confidential, proprietary information from the ongoing (I hope) discussions, it would be nice to know that this was productively discussed at the last commission meeting on Oct, 7th and will be addressed at the upcoming one on Oct, 21, and each one in the future.

    I would think that in addition to all the other valid arguments for P2P PA lending, Interstate Commerce activity and laws would come into play.

    hostage: one that is involuntarily controlled by an outside influence.
    merriam-webster.com

  • John Henson

    I couldn’t agree more with Steve. This is somewhat similar to a note I posted about 2 weeks ago. For some reason, we seem to not be getting updates or any further information from Prosper.com. Did you folks just give up on us, guys????

  • Fredricka

    I just logged on in hopes of adding to my lending account only to find I can no longer do this because I live ion the state of Pennsylvania. I am so infuriated. Since when can my state tell me who I can and can not invest with? In today’s economy I can’t believe I have limitations on being able to inject money into the market! I’d love to know how and who to contact to make my voice know. If anyone out there knows more about this I’d love to hear!

  • Tim Mangan

    I understand politicians are politicians and rules are rules but you’re not helping PA lenders out. At least set up an auto transfer as funds become available – throw us a bone and give us the pleasure of a response. You have handled this poorly – being professional means dealing with the events as they happen, not letting us learn about it as we check our accounts. This one’s on you, guys!!

  • http://blog.prosper.com Prosper Blog

    Prosper continues to work with the Pennsylvania regulators and will keep you apprised when appropriate as to progress. At this time there is nothing further to report.

    We thank you for your comments and read each and every one. We are encouraged by the community reaching out in support.

  • Greg

    If Pennsylvania lenders are no longer permitted to transfer funds into our accounts, or reinvest our proceeds into new loans, then why the $25 minimum to transfer funds out of our Prosper accounts?

    In other words, why I am being deprived of the opportunity to take my proceeds from Prosper and invest them somewhere else? Even a few days without the opportunity to put these funds elsewhere is money out of my pocket.

  • Havrenko

    No update in nearly a year.

    Why are Pennsylvanians still blocked?

  • Michael Levin

    What kind of regulation or “current interpretation of PA state regulations” are you speaking?
    Could you send a reference?

    Is is temporary?


posted in Lenders,Prosper News 63 comments »

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