What does our research say about SoLo Funds?

Illegal Activities Alleged by the CFPB: SoLo Funds has been accused by the Consumer Financial Protection Bureau (CFPB) of deceptive practices, including advertising no-interest loans while charging hidden fees through “tips” and “donations.” The platform allegedly misled borrowers about the true cost of loans, with APRs often exceeding 36%, and in some cases, reaching up to 500%.

Threats of Negative Credit Reporting: SoLo Funds threatened borrowers with negative credit reporting, even though they never actually reported any missed payments to credit bureaus. This tactic was used to intimidate borrowers into repaying loans.

Creation of a “Social Credit” Score Without Safeguards: SoLo created its own “social credit” score for borrowers without ensuring the accuracy of the data collected. This irresponsible practice could lead to unfair treatment of borrowers based on inaccurate information.

Settlements with Multiple States: SoLo has faced legal action from multiple states, including California, Connecticut, and the District of Columbia, for false advertising, lending without proper licenses, and charging interest rates that exceed state caps. The company agreed to pay $2.2 million in settlements but admitted no wrongdoing.

Unethical Debt Collection Practices: SoLo engaged in aggressive debt collection tactics, including sending misleading collection notices that falsely claimed delinquent accounts would be reported to credit agencies.

This summary is automatically created and published by data analyzed and provided by ChatGPT 40, Grok and Google.