It appears that earlier this month the Virgin Money US web site (www.virginmoneyus.com) shut down. It has been clear for some time that Virgin’s foray into peer to peer lending in the US was not working out the way it expected. But now it looks like they have completely pulled the plug in the US. Their web site has been down for several days now and a link to Virgin Money US has been deleted from the main Virgin Money site.
The consequences of this move for borrowers and lenders is minimal. Unlike leading peer to peer lenders such as Lending Club or Prosper, Virgin Money specialized in organizing loans between people who already had an existing relationship (such as friends or family). This is what I call direct peer to peer lending (direct p2p). You couldn’t apply for a loan with Virgin Money, they merely served as an intermediary between people who had already agreed to participate in a loan. These people can continue paying back the loans in the terms already agreed to in the Virgin Money paperwork. [Read more…]