So, About Those 'Free' Wedding Loans...

Never mind, dearly beloveds: A Seattle-based startup is reneging on its vow to offer free wedding loans, repayable only upon divorce.

SwanLuv made headlines late last year when it announced plans to offer $10,000 to engaged couples looking to fund their dream weddings. These funds would remain free, so long as the pair stayed together, company CEO and founder Scott Avy told Credit.com back in December. Upon divorce, each ex would have to pay the full amount of the loan, plus all the interest that accrued over the course of their marriage, split right down the middle.

The pitch (at the time at least) was that all the interest SwanLuv made off of divorces would be used to fund more loans. The company would make revenue through advertising partnerships, Avy said, though he provided few other details on how his service would actually work.

Well, it appears the business model did not come together as planned since on Feb. 15 (the startup’s advertised launch date), SwanLuv announced it would no longer be a lending platform. Instead, it plans to help couples crowdsource funds for their big day from friends, family and community members.

“Due to overwhelming demand (nearly two billion dollars at $10,000 per couple) and unanticipated legal regulations/restrictions in the lending space, rather than pull out we came up with a tool we believe still helps couples with their wedding financing,” Avy said in a written statement posted on the company’s Facebook site and forwarded to Credit.com, when asked for comment on the change. “We sincerely apologize to anyone we have upset by adjusting our funding platform.”

The Unhappy Couples

According to Avy, surveys the company conducted among prospective users showed high interest in a wedding crowdfunding platform, which, per its Facebook page, still entails paying the money back upon divorce, just to dear old mom and dad, Aunt Sue or anyone else kind enough to contribute toward your nuptials.

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Still, the company’s about-face hasn’t been entirely well-received, as many people who had registered on the site took to social media to air their grievances.

“I’m BEYOND upset about this!” one commenter wrote on SwanLuv’s Facebook page. “Do you honestly think that some of us haven’t tried crowdfunding or asking everyone we can think of for help. I feel completely betrayed. I waited MONTHS to be told to start a crowdfund?!”

Another woman who had been hoping to use a SwanLuv loan to fly family out for her wedding posted a video to YouTube, taking issue with the reversal. “I and a few other applicants did not receive the survey that Swanluv claims to have sent out,” she wrote beneath the vlog. “Frankly, I am immensely disappointed in all of this.”

Some consumers were more sympathetic to the startup’s plight.

“With as much grief as you are receiving from everyone, I appreciate that instead of throwing in the towel you guys are adjusting into something that will work in the meantime,” another Facebook commenter wrote. “Thank you for working through it instead of giving up!”

Of course, the fact some people reported difficulties accessing the site during the past few days only contributed to the outrage. Per Avy’s Facebook post, the outage was related to server overload, not a formal closing of business. “We are currently working on a stable solution to the volume of site traffic we are experiencing,” he said.

You Still Have Options for Paying for Your Wedding

The overwhelming interest in SwanLuv’s initial offering isn’t exactly surprising. These days, weddings can cost couples a small fortune. An annual survey from TheKnot put the average 2014 wedding cost at $31,213, up from $29,858 the year before.

If you’re having trouble financing your big day, you could potentially lower the cost of your wedding by saving during a long engagement, cutting back on unnecessary expenses and taking on additional jobs or side gigs ahead of the big day. You also can look into a low-interest credit card or personal loan. Just be sure to read the terms and conditions carefully and shop around for competitive rates. It can also help to check your credit scores before applying so you can qualify for the best offers. (You can pull your credit reports for free each year at AnnualCreditReport.com and view your credit scores for free each month on Credit.com.)