RateSetter to close family finance loan product

RateSetter to close family finance loan product 1

RATESETTER is to stop offering its family finance product from the new year.

The product was launched by the peer-to-peer lender last year, letting individuals apply for a loan to pay for their divorce litigation.

Investors were told in RateSetter’s monthly newsletter that the product will no longer be offered to new customers after 31 December.

The product helped assist with the legal costs of those going through a divorce or civil partnership dissolution and with any proceedings concerning children.

Read more: RateSetter exits unsecured business loans market

Read more: RateSetter plans ‘cautious growth’ in car finance market

Loans ranged from £10,000 to £500,000 and capital and interest was payable upon settlement of the case.

Applicants could get a decision within three working days and invoice payments could be made directly to a law firm the next working day.

RateSetter previously lent to divorce funder Novitas as part of its former wholesale lending activities, but the partnership is thought to have been terminated by the time Close Brothers Group acquired Novitas last year.

It comes after RateSetter appointed Anna Decoudu as its head of consumer finance.

She was involved in devising Hargreaves Lansdown’s since-abandoned entry into the P2P lending market.

First seen on P2P Finance News

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