CFPB Sues SoLo Funds Over Deceptive Loan Practices, Digital Trickery

May 17, 2024, 04:18 PM

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against SoLo Funds, a peer-to-peer lending platform, for allegedly deceiving borrowers about the true cost of its loans. Despite advertising zero-interest loans, SoLo Funds reportedly used digital trickery and dark patterns to ensure that almost every borrower paid a fee, disguised as a 'tip' or 'donation.' The lawsuit, filed in California federal court, aims to address these deceptive practices and follows repeated run-ins SoLo Funds has had with state regulators.