Prosper changed the way we report most severely delinquent loans from “Defaulted” and “4+ months late” to “Charge-offs” in September.
Borrowers whose loans are 91 or more days past due (DPD) will receive a “Notice of Acceleration”. The Notice of Acceleration is a warning that their loan will be accelerated in 30 days, meaning the loan will be due and payable in full. If the borrower doesn’t make a payment by the 30 day deadline, his or her loan will then be charged-off at 121 days past due.
Please note that we have added a new loan object status of “Charge-off” to our data export to account for a new classification of loans as described in this blog post: http://blog.prosper.com/2008/09/24/site-update-%e2%80%93-september-23-2008/
The new status will start appearing in the export file by October 24th.
Please contact APIServices@prosper.com if you have any questions.