For all borrower loans, the borrower’s identity is verified against data from consumer reporting agencies and other identity and anti-fraud verification databases. In some instances, the income or employment information provided by applicants in listings is verified. This verification is normally done after the listing has been created but before the loan is funded, and therefore the results of the verification process are not reflected in the loan listings. If material information with respect to a borrower or listing cannot be verified, Prosper will cancel or refuse to post the listing or cancel any or all commitments against the listing. Prosper may also delay funding of a borrower loan in order to verify the accuracy of information provided by an applicant in connection with the listing, or to determine whether there are any irregularities with respect to the listing. If Prosper identifies material misstatements or inaccuracies in the listing or in other information provided by the borrower, it will cancel the listing or related loan.
If there is a default under a Note due to verifiable identity theft of the named borrower’s identity, Prosper will in its discretion either repurchase the Note or indemnify the Note holder against losses on the Note. The determination of whether verifiable identity theft has occurred is in Prosper’s sole discretion, and Prosper may require proof of identity theft, such as a copy of a police report filed by the person whose identity was wrongfully used to obtain the fraudulently-induced Borrower Loan, an identity theft affidavit, and/or a bank verification letter, in order to determine that verifiable identity theft has occurred.