Consumer complaint received 2022-11-17
Company: Prosper Marketplace, Inc.
State: SC
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem with the payoff process at the end of the loan

Complaint:
I have contacted Prosper in writing ( delivered via XXXX  ) twice and by phone once and have not received a satisfactory resolution to the following issue. I have received general emails that do not pertain to my account or my account issue. 

I opened a personal loan with Prosper on XX/XX/XXXX in the amount of {$28000.00} for a duration of 60 months. I elected to have the monthly loan payments automatically drafted from my XXXX  XXXX XXXX checking account once a month from the time I opened the loan until the loan was paid in full. During the COVID pandemic, Prosper offered a 90 day/ ( 3 ) three monthly payment deferral program that I agreed to participate in. The way the deferred payments were described and presented by Prosper was that the ( 3 ) three monthly payments would extend the loan term by 90 days/ 3 payments. 

On XX/XX/XXXX I was notified by a third-party credit reporting agency XXXX XXXX XXXX  that the Proposer loan was being reported as having a 30 late payment by the XXXX, XXXX and XXXX Credit Bureaus XXXX Having never missed a payment on this account or any account ever, I contacted Prosper via email and received no response. A few days later I contacted Prosper by phone and after being transferred to three different Customer Service Representatives, I was made aware that I did not miss a loan payment, however, the entire loan balance was due which was the total of 3 months of payments that were deferred during COVID. Additionally, the automatic payment was terminated without my knowledge. I was under the impression that the automatic payments would continue ( 3 months longer ) until the loan was paid in full and to address the three COVID deferred payments.

Upon learning the entire balance was due, I immediately logged in online and paid the balance of {$2800.00} off in full and the account was with a XXXX balance as of XX/XX/XXXX, four days after being notified the deferred payments/ balance was due. It was my understanding when accepting the COVID payment deferral that my auto payments would continue to collect the 3 deferred payments at the end of the loan.

I was told management would review my concern and provide a response and resolution within five to ten business days, in which I never received a response from management. I have since reached out to Prosper by mail and email asking that 30 late payment be removed my credit reports since payments on the loan were never late and the auto withdrawals were terminated without notice. The email responses I have received either did not apply, did not answer my questions or address my concerns and instead were back and forth responses by the Customer Service Representatives that was a continuation of the poor customer service received from my initial contact with Prosper in an attempt to resolve this matter.

As a result of Prospers inaccurate reporting of a 30 day late payment to the Credit Bureaus, my credit score has been negatively impacted by +/- XXXX points, one credit card Creditor has lowered my credit limit on my account with them and another Creditor has closed my account. The negative reporting of the repayment of this loan is misrepresentative and deceptive since the loan never had a missed payment. I also have never had a missed or late payment on any account in the twenty-eight years of having established credit. Additionally, I have never had a missed or late payment on previous and current loan with Prosper. I have attached a payment ledger showing that a payment was made every month for the duration of the loan.

The fact that the repayment terms of the deferred payments and the termination of automatic withdrawals were not explicitly conveyed during the acceptance of the COVID payment deferral program, the terms were deceptive causing my credit to be negatively impacted.

I am respectively requesting your assistance in the removal of the 30 late payment from my XXXX ; XXXX, XXXX and XXXX XXXX XXXX upon which I will consider this issue completely resolved. This seems like a reasonable request, since the loan balance was immediately paid in full upon being notified.

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