HARRISBURG, PA — Attorney General Michelle Henry this week announced the distribution of $158,924 in restitution payments to 1,309 Pennsylvania residents following a settlement with California-based online lending platform, SoLo Funds, Inc. The settlement resolves allegations that the company violated Pennsylvania’s usury and consumer protection laws.
The allegations stemmed from the company’s loan model, which allows borrowers to pay voluntary “tips” to lenders and platform maintenance “donations.” The Commonwealth argued that these practices were a disguised method of charging excessive interest rates, violating the Loan Interest Protection Law and the Consumer Discount Company Act. The platform also faced accusations of deceptively advertising loans with “0% APR” and claiming no finance charges, which the Commonwealth deemed misleading under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law.
The settlement, formalized through an Assurance of Voluntary Compliance filed in the Philadelphia Court of Common Pleas, required SoLo to overhaul its business practices to comply with state laws. Furthermore, the company agreed to pay $25,000 in civil penalties and $25,171.51 in investigation costs. Additionally, SoLo ceased collection of over $530,000 in unpaid principal, tips, donations, and fees from Pennsylvania borrowers.
Restitution payments were issued on December 18, 2024, directly to eligible consumers. Anyone with questions regarding the restitution program is encouraged to contact the settlement administrator for further details by visiting the settlement administrator’s website, or call 833-472-1993..
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