SoLo Funds Fined $200,000 for Illegal Lending in Pennsylvania

Fintech lender also ordered to stop collections on more than $500,000 of loans

An app-based lender advertising brokered short-term loans with no fees or interest rates now must pay a total of nearly $1 million for illegal lending activity in Pennsylvania.

The Pennsylvania Attorney General's office announced a settlement with fintech lender SoLo Funds that orders the company to forego collections on more than $500,000 in loans and pay fines totaling just over $200,000.

The Attorney General's investigation into SoLo found that the company was advertising loans at 0% interest but using tips and donations to collect funds from consumers. The Attorney General found that this conduct amounted to deception, tricking consumers into taking loans that carried significant, undisclosed costs.

In other states where SoLo Funds has run afoul of lending laws, they've been found to charge interest rates above 1000%.

“This predatory lender used their tip and donation configuration to deceive consumers into paying outrageous and illegal interest rates on loans,” Attorney General Michelle Henry said. “This settlement puts a stop to the company’s manipulative conduct and their ongoing collection efforts, while providing relief to those who were tricked into the scheme.”

Photo byEdi KurniawanonUnsplash