Prosper no longer allowing PA residents to lend money

September 16, 2008 · Posted in Personal Finance · 1 Comment

I haven’t discussed Prosper.com much on this blog, but it is a peer-to-peer lending site that I have been thinking about getting involved with. I was looking into the tax implications of peer-to-peer lending before getting started, but I guess I don’t have to worry about that anymore.

This morning, I got an e-mail from Prosper – basically, if you’re a resident of PA, you can no longer lend money out or sign up to be a lender. Seems kind of sudden, despite “ongoing discussions”. I would be pretty ticked if I were more involved in Prosper.

Are you a PA Prosper lender? What do you think of the announcement?