[ad_1]
SoLo Funds faces a new class action lawsuit According to the version Viewed by TechCrunch and First reported by Bloomberg.
SoLo Funds is accused of misleading consumers by advertising zero interest fees on loans while encouraging “tip fees” and “donation fees” to obtain said loans. The complaint alleges that these are hidden fees that the company makes difficult to opt out of, making its loans more expensive than borrowers expected.
As TechCrunch previously reported, the company has been sued by the state of Connecticut, California, and the Consumer Financial Protection Bureau (CFPB). In May, the CFPB alleged that the company used “dark digital patterns” to mislead consumers and illegally collect fees, despite advertising there were no fees. SoLo Funds has settled these previous lawsuits with everyone except the CFPB.
SoLo has raised at least $13 million, according to Crunchbase, from backers like Serena Williams, Alumni Ventures, and Techstars. SoLo Funds declined to comment.
[ad_2]