Got money to Lend??

Got Debt? Need a New Car? Need Start Up Money? --- Or you got Money to burn / Lend??. Well check this site that I ran across the other day Prosper.com

If you need money - you set up an account - verify some info -- write a little summary of why you need the money -- set up some terms -- and wait for folks to "lend you money". The people (lenders) with the best interest rate -- win. When enough people agree to lend to you -- and you have all the money you need the "auction" is over. You get your money and for the next 36 months you agree to pay back all those folks/lenders -- through Prosper.com.

If you got the money to "lend" you sign up for an account -- verify some info -- and transfer however, much money you would like to lend. You search through all the people that need a loan - read their "story" and review their credit rating/score and their debt to income ratio. When you find somebody - you enter how much you are willing to lend and the interest rate you want to receive. When the "auction" is over the money gets transfered to them and you start receiving payback for the next 36 months at whatever interest you stated...

It sounds good and the return could be good. But for 1 its an unsecured loan. and if someone decided their not going to payback the loan - sounds like thats just to bad - you picked the wrong person to lend to. Reading through the site - it didn't seem like their was really any way to recoup money not paid back. (they do say that late payments will be sent to a collection agency)

Also, it looked as though about 90% needed loans to pay off other loans. Do you Really want to lend folks money to pay off other loans? Also, how accurate is all the stuff Prosper.com is suppose to verify??