Just as Lending Club announced that they had emerged from their quiet period, Prosper announced that they will be entering one. A SEC “quiet period” is the period of time between the filing of the SEC paperwork and when the SEC officially accepts and marks the paperwork effective. I can’t say that I completely understand it, but you can read the same explanation I did at the SEC website.
I’ve been a user at Prosper very nearly since they opened. I’ve been a lender at Prosper for a shorter period of time, but have been extremely happy with my results and with the user experience at Prosper. It would appear that they are still accepting Borrowers and making loans to borrowers during the quiet period, but that the Lending side will be nearly shut down.
Until we complete the registration process, we will not accept new lender registrations or allow new commitments from existing lenders. If you’re an existing lender, your current lender agreements will be unaffected; your existing loans will continue to be serviced; you’ll be able to track and monitor your loans; and you’ll be able to withdraw funds from your Prosper account.
If you’re a borrower with an existing loan, you will continue with your current borrower agreement and be unaffected by the registration process. If you’re a borrower seeking a loan, you will still be able to create a new loan listing, which we will endeavor to fulfill through alternative sources.
They go on to state that a quiet period can last several months. Lending Club entered theirs in April. All told, it took them 6 months to come out of the quiet period. That’s a long time if you’re a lender. Especially if you’re an active lender.
Perhaps it’s time that I branch out a little and see what else there is to offer. Maybe over at Lending Club? Has anyone used Lending Club? How do you like it? What do you like/dislike about it?
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I started this blog to share what I know and what I was learning about personal finance. Along the way, I've discovered the Yakezie group, and many other blogging friends.
