Consumer complaint received 2023-11-01
Company: Prosper Marketplace, Inc.
State: TN
Product: Payday loan, title loan, personal loan, or advance loan
Sub-product: Personal line of credit
Issue: Getting a line of credit

Complaint:
Prosper responded with the following statemen : " Thank you for applying for a XXXX loan through Prosper. Prosper is providing this notification to you on behalf of XXXX. XXXX is unable to accept your loan request because Prosper Score is too high XXXX uses a credit scoring system that assigns a numerical value to the various items of information considered in evaluating a loan request. These numerical values are based upon the results of analyses of repayment histories of large numbers of consumers. The information you provided resulted in credit scores that were below the minimums needed to post this listing. The reasons you did not score well compared with other applicants are : Too many different phone numbers Delinquent past or present credit obligations with others Time since delinquency is too recent or unknown. 
Time since most recent trade in derogatory status opened is too short '' I responded with the following email to Prosper and XXXX : " Dear XXXX and Prosper, I am writing in response to your letter dated XX/XX/2023, regarding my loan application. While I appreciate the information provided, I would like to express my concerns and request a reconsideration based on the following points : 1. Prosper Score Confusion : Your letter states that my loan request was declined because the " Prosper Score is too high. '' This statement appears contradictory as typically, a higher score indicates a better creditworthiness. Could you please clarify this point and how it relates to my application? 

2. Right to Credit : As an original consumer, I want to emphasize that nowhere in the term " adverse action '' as defined within the FCRA does it specify that a natural person can be denied credit. I am aware of my rights and the voluntary nature of reporting to consumer reporting agencies. My credit has been used for the loan inquiry, but I've received no benefit from it. 

3. Inquiry on Credit Report : The inquiry that has been made on my credit report signifies a transaction. If this transaction has resulted in someone getting paid or compensated, it has been without any benefit to me. The negative impact this might have on my credit, coupled with the denial of my application, is distressing both mentally and financially. I'd like to reference Unauthorized use 15 U.S. Code 1643 regarding potential misuse of my credit information. 

4. Discrimination Concerns : I feel that the denial based on the reasons provided could potentially discriminate against me as an individual. I genuinely believe there are no federal laws specifying that a credit score can limit my right to extend credit. I'd like to point out potential concerns under 15 U.S.C 1691.

5. Reinvestigation Request : Given the seriousness with which I regard my financial health and my consumer report, I demand a reinvestigation into this matter. I implore XXXX and Prosper to abide by federal regulations and reconsider my application based on a holistic view of my financial situation and not solely on the grounds mentioned in the denial letter. 

6. FCRA Rights : I am aware of my rights under the Fair Credit Reporting Act, including the right to obtain a copy of my credit report and dispute any inaccuracies. I will be following up with XXXX to ensure that all information is accurate and up-to-date. 

In conclusion, I kindly request that my application be reconsidered with the points above taken into account. I value transparency and fairness in all my financial dealings and hope to find a resolution to this matter. 

Thank you for your attention to this serious concern. 

Sincerely, XXXX '' Prosper did not respond to my correspondence.

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