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Fintech Nexus Newsletter (May 20, 2024): SoLo Funds sued by CFPB for deceiving borrowers
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Fintech Nexus Newsletter (May 20, 2024): SoLo Funds sued by CFPB for deceiving borrowers

Fintech Nexus Newsletter (May 20, 2024): SoLo Funds sued by CFPB for deceiving borrowers

Peter Renton·
Fintech Nexus Newsletter
·May. 20, 2024·4 min read

On Friday, the CFPB announced it was suing mobile peer-to-peer lending platform SoLo Funds for multiple issues.

SoLo Funds targets minority and other underserved borrowers with short-term loans of up to $575. This is a challenging population to serve and a difficult niche to profit from.

The CFPB alleges that SoLo Funds has misrepresented the cost of its loans, tricked borrowers into a mandatory donation, threatened borrowers who don’t pay, and created a social credit score without safeguards.

I have been following SoLo Funds since they began and have chatted with the founders multiple times. I have also invested in dozens of loans on their platform. I believe they are trying to do the right thing but are operating a new model that has never passed regulatory muster before. 

While some of these allegations are serious, I have sympathy for SoLo Funds. They serve borrowers who have few low-cost options, and while they have had regulatory challenges all the way through (several state actions are pending), the CEO said that this latest action from the CFPB was a surprise.

I believe that SoLo Funds does more good than harm, but it may be an uphill battle to prove that to the CFPB and other regulators.


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  • Peter Renton
    Peter Renton

    Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.

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