Attorney General Michelle Henry has announced the issuance of restitution payments totaling $158,924 to 1,309 consumers in Pennsylvania. This action follows a settlement reached on July 1, 2024, with California-based online lending platform SoLo Funds, Inc. (SoLo), which was accused of violating state usury and consumer protection laws.
The settlement, resulting from allegations that SoLo operated a “community finance platform” offering short-term loans under a model that may effectively impose excessive interest rates, was formalized through an Assurance of Voluntary Compliance filed in the Philadelphia Court of Common Pleas. Under this agreement, SoLo has agreed to amend its business practices to ensure compliance with Pennsylvania laws.
The Office of Attorney General charged that SoLo’s “tip” and “donation” features, associated with its loans, skirted legal limits on interest rates as stipulated by Pennsylvania’s Loan Interest Protection Law and Consumer Discount Company Act. Further accusations included misleading consumers through loan disclosures and falsely advertising loans as “0% APR” with “no finance charge.”
Besides the restitution, SoLo will pay $25,000 in civil penalties and $25,171.51 to cover the costs of the investigation. The company has also halted collection efforts on over $530,000 worth of loans, including principal, tips, donations, and fees related to any loans involving Pennsylvanian borrowers or lenders.
Restitution checks were dispatched directly to the affected consumers on December 18, 2024. For more information, consumers can visit the settlement administrator’s website or contact them at 833-472-1993.
