Prosper pays refunds to lenders and group leaders

Prosper announced they would pay refunds to lenders and group leaders to correct errors where servicing fees were charged "in a manner inconsistent with the Prosper Lender Registration Agreement." Rateladder points us to the back story where Traveler505 brought the matter to the attention of Prosper.

Misappropriation of lender funds by Prosper Marketplace Inc.
Follow-up to MNH Report #1 is 90 days delinquent on payments to group leaders

Prosper will make some payments as early as mid-January and all the refunds will be complete no later than the end of February. In addition to refunding the payments, Prosper will pay 7% interest on any withheld funds.