Consumer complaint received 2024-01-17
Company: Prosper Marketplace, Inc.
State: CA
Product: Debt collection
Sub-product: Other debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
Prosper Funding LLC responded to my complaint but did not provide the documents as i requested. If there is an legitimate debt that is owed there should be accounting records for this transaction. 16 CFR 433.1 states that a purchase money loan is received in return for the finance charge therefore Prosper Funding LLC did not loan anytthing but actually received a cash advance this is false misrepresentation. If this is not true produce the records that prove otherwise I am not asking for a simple contract but official accounting records. It is my belief that Prosper has failed to properly account for the proceeds of this transaction. 

( d ) Purchase money loan. A cash advance which is received by a consumer in return for a Finance Charge within the meaning of the Truth in Lending Act and Regulation Z, which is applied, in whole or substantial part, to a purchase of goods or services from a seller who ( 1 ) refers consumers to the creditor or ( 2 ) is affiliated with the creditor by common control, contract, or business arrangement. ( e ) Financing a sale. Extending credit to a consumer in connection with a Credit Sale within the meaning of the Truth in Lending Act and Regulation Z. 

( f ) Contract. Any oral or written agreement, formal or informal, between a creditor and a seller, which contemplates or provides for cooperative or concerted activity in connection with the sale of goods or services to consumers or the financing thereof. 

( g ) Business arrangement. Any understanding, procedure, course of dealing, or arrangement, formal or informal, between a creditor and a seller, in connection with the sale of goods or services to consumers or the financing thereof. 

( h ) Credit card issuer. A person who extends to cardholders the right to use a credit card in connection with purchases of goods or services. 

( i ) Consumer credit contract. Any instrument which evidences or embodies a debt arising from a XXXX XXXX Loan transaction or a financed sale as defined in paragraphs ( d ) and ( e ) of this section. 

( j ) Seller. A person who, in the ordinary course of business, sells or leases goods or services to consumers. 
16 CFR 433.3 - Exemption of sellers taking or receiving open end consumer credit contracts before XX/XX/1977 from requirements of 433.2 ( a ).

CFR a ) Any seller who has taken or received an open end consumer credit contract before XX/XX/1977, shall be exempt from the requirements of 16 CFR part 433 with respect to such contract provided the contract does not cut off consumers ' claims and defenses. 

( b ) Definitions. The following definitions apply to this exemption : ( 1 ) All pertinent definitions contained in 16 CFR 433.1.

( 2 ) Open end consumer credit contract : a consumer credit contract pursuant to which open end credit is extended. 

( XXXX ) Open end credit : consumer credit extended on an account pursuant to a plan under which a creditor may permit an applicant to make purchases or make loans, from time to time, directly from the creditor or indirectly by use of a credit card, check, or other device, as the plan may provide. The term does not include negotiated advances under an open-end real estate mortgage or a letter of credit. 

( 4 ) Contract which does not cut off consumers ' claims and defenses : A consumer credit contract which does not constitute or contain a negotiable instrument, or contain any waiver, limitation, term, or condition which has the effect of limiting a consumer 's right to assert against any holder of the contract all legally sufficient claims and defenses which the consumer could assert against the seller of goods or services purchased pursuant to the contract.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation