Editorial: Why did Prosper.com Obfuscate its Investment Performance?
If you would have visited Prosper’s website a week ago, you would have clearly seen the rate of return that its investors are receiving on its homepage. Both Prosper and Lending Club had their average interest rates listed directly on their homepages.
Prosper is now only providing their potential lenders an “estimated” rate of return on their homepage. You have now have to come through the company’s “marketplace performance” page or dig into the company’s 154 page prospectus to get any meaningful data about what risks are associated with the investment and what rates of return you’re likely able to see.
Here’s what Prosper.com’s homepage looks like now:
Here’s what it looked like a week ago:
Why would Prosper.com try to hide the rates of return that their investors are receiving? Maybe it’s because Lending Club’s homepage looks like this:
This story was originally published by American Banking News (http://www.americanbankingnews.com) and is the sole property of American Banking News. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at http://www.americanbankingnews.com/2009/09/14/editorial-why-did-prosper-com-obfuscate-its-investment-performance/
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