SoLo Funds Faces Class Action Lawsuit for Allegedly Misleading Consumers
SoLo Funds is currently in hot water as they are facing a new class action lawsuit, as reported by Bloomberg and seen by JS. The lawsuit accuses the company of deceptive practices in their loan offerings.
The complaint alleges that SoLo Funds misleads consumers by advertising zero interest fees on loans while actually encouraging additional “tip fees” and “donation fees” in order to secure the loans. These hidden fees are said to be difficult for borrowers to opt out of, ultimately making the loans more costly than initially expected.
This is not the first time SoLo Funds has come under legal scrutiny. The company has previously been sued by Connecticut, California, and the Consumer Financial Protection Bureau (CFPB). In a separate case, the CFPB accused SoLo Funds of using “digital dark patterns” to deceive consumers and unlawfully collect fees, despite their claims of no fees. While SoLo Funds has settled with the states of Connecticut and California, the lawsuit with the CFPB remains unresolved.
Despite these legal challenges, SoLo Funds has managed to secure significant funding, raising at least $13 million from investors such as Serena Williams, Alumni Ventures, and Techstars. The company, however, has declined to comment on the recent class action lawsuit.
