CFPB Agrees to Drop Case Against SoLo Funds as Agency Cuts Back
Live Mint-- The Consumer Financial Protection Bureau and peer-to-peer lending platform SoLo Funds agreed to put an end to the agency’s lawsuit against the company amid a broader halt to enforcement actions, according to court filings. While SoLo Funds brands itself as a third-party platform that connects borrowers to lenders with no mandatory fees or interest, the total costs of some loans serviced by SoLo Funds carry an equivalent annual percentage rate of over 1,000%, according to the CFPB’s complaint. SoLo’s business model reached almost 2 million users earlier last year, nabbed a spot on CNBC’s 2023 Disruptor List and received financial support from the venture fund of tennis superstar Serena Williams. On Oct. 16, a class action lawsuit was filed against the company alleging that SoLo Funds’ lending practices are “unlawful and deceptive.” --With assistance from Evan Weinberger.
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