Prosper Loans Complaints

Over the years that Prosper has been in business, there have been relatively few Prosper Loans Complaints lodged against the company regarding the company’s services or business practices.

There have been some customers that have been disappointed with their experiences with the company, but in many cases, their disappointment is due to their misunderstanding of the risks, performance, services, or requirements of the company.

“Some of the most common complaints against Prosper can be easily explained and resolved with a minimum amount of effort.”


A routine complaint about Prosper is that borrowers are rejected from the service without an adequate explanation for the rejection.  The only reason why a borrower’s loan listing would be rejected is if the borrower or the listing did not meet the company’s requirements.

For example, any borrower applying for a loan through Prosper must be a citizen of the United States, have a valid social security number and bank account, have a credit score of 640 or above, and reside in a state where Prosper loans are allowed.  If the borrower does not meet all of these requirements, they will not be allowed to create a loan listing on Prosper’s website.

Another typical Prosper Loans Complaint made is that the interest rates that are charged to the borrowers are too high or that the interest rates given to the lenders are too low.

The interest rates that are assigned to each loan listing are determined by a specific algorithm created by the company that takes a number of factors into account, such as the borrower’s credit score, the borrower’s ratio of credit to debt, and the loan amount requested.

The interest rates are automatically assigned to each loan and are non-negotiable by the borrower or lender.

Risk of Loan Default

Investors Must Understand The Risks Involved


Common Prosper Loans Complaints by lenders that use Prosper are that they are not earning the expected rate of return for their investment or that too many of the loans in their portfolio are defaulting.  In most cases, this has nothing to do with Prosper as a company and everything to do with the types of loans the lender has chosen to fund.

“Every lender that is interested in investing with Prosper must understand that there are risks involved.”


Just like any other type of investment, and there are no guarantees on what the results of the lender’s investments will be.  It is important for the lender to do their research and examine the loans that they are choosing carefully to ensure that they are not assuming more risk than they are comfortable with.