Prosper: The eBay of Loans?

E-Loan co-founder Chris Larsen's online marketplace matches lenders and borrowers. Banks and "payday" outfits alike will be watching closely

A decade ago, when Chris Larsen co-founded online loan broker E-Loan, he purposely took aim at traditional mortgage lenders, many of which he thought deceived borrowers and charged too much. Now, he intends to shake up a whole new swath of the financial services business. With Prosper Marketplace, a San Francisco startup he's launching Feb. 13, Larsen aims to carve out a new business -- this time by doing a number on check-cashing "payday" lenders that charge usurious interest rates.

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