"RateSetter Grows as Banks Increase Margins"

LONDON, May 24, 2011 -

The scandal of PPI has been seen as some as a victory for consumers, and
another kick for the embattled banking industry. In the same week, a report
told us that average credit card rates have reached a 13 year high. This
week, we hear that personal loan rates are following suit.

In short, consumers are picking up the bill for the cost of the banks'
mistakes.

As a result, peer to peer finance company RateSetter (rollover: Peer to
Peer Lender; hyperlink: www.ratesetter.com) has seen business booming,
breaking the GBP4m in loans matched barrier on 23rd May. In particular, it
has enjoyed a spectacular increase in 1 and 2 year "rolling" loans, which now
comprise some of cheapest credit (rollover: low cost loans; hyperlink:
www.ratesetter.com) available to consumers.

The bills of PPI, in conjunction with a change in regulation over how
much equity banks must hold against consumer debt, has had the consequence
widening the gap between what bankers pay their Savers, and what they charge
Borrowers. In short, consumer finance has become expensive business for them.
Peer to peer finance (rollover: Peer to Peer Lender; hyperlink:
www.ratesetter.com), with its lower cost business models, is thriving
in this landscape.

Rhydian Lewis, CEO of RateSetter, said "We've been amazed by the success
of our Rolling Loans (rollover: Rolling Loan; hyperlink:
www.ratesetter.com/ratesetter_one_year_loan.aspx) - it has increased
from 22% of our business in January to as much as 65% in April and May.
RateSetter's Rolling Market has become the "Loan of First Resort" for
consumers wanting a good value loan. In return, Savers are keeping abreast of
inflation, earning 4% plus with monthly access to their money."

NTE:

RateSetter is a peer to peer finance (hyperlink: www.ratesetter.com)
company, launched in October 2010. It is the brainchild of Rhydian Lewis,
formerly a Lazard investment banker.

RateSetter matches creditworthy borrowers looking for a 1-3 year low cost
loan (hyperlink: www.ratesetter.com), with Savers looking to earn
better returns on their savings by lending money (hyperlink:
www.ratesetter.com) out. It is unique in the marketplace as the
only peer to peer finance provider to offer a Provision Fund (rollover:
RateSetter Provision Fund hyperlink:
www.ratesetter.com/lending/credit_process.aspx) that shields Savers
from the risk of bad debt.

RateSetter has matched over GBP4m in loans since inception, with no
defaults as yet.

* Sources:
Evening Standard, 13th May 2011.
www.thisislondon.co.uk/standard-business/article-23949786-banks-hiking
-their-fees-to-pay-for-ppi-compensation.do

MoneyFacts, 23rd May 2011
moneyfacts.co.uk/news/loans/loan-warning-as-rates-hit-ten-year-high230
511/

www.RateSetter.com

(Due to the length of the URLs, it may be necessary to copy and paste
the hyperlinks into your Internet browser's URL address field. Remove the
space if one exists.)

Contact details: Alex Gowar, Marketing Director, Unit 327 Great Guildford Business Square, 30 Great Guildford Street, London SE1 0HS, +44(0)20-3142-6255