SoLo Funds is dealing with a brand new class motion lawsuit in accordance with a duplicate seen by TechCrunch and first reported by Bloomberg.
It accuses SoLo Funds of deceptive shoppers by promoting zero curiosity charges on loans but encouraging “tip charges” and “donation charges” to acquire stated loans. The criticism alleges these are hidden charges that the corporate makes exhausting to choose out of, making their loans dearer than debtors anticipated.
As TechCrunch beforehand reported, the corporate has been sued by Connecticut, California, and the Shopper Monetary Safety Bureau (CFPB). In Might, the CFPB alleged the corporate used “digital darkish patterns” to mislead shoppers and illegally take charges, regardless of promoting there have been no charges. SoLo Funds settled these earlier fits with all however the CFPB.
SoLo has raised a minimum of $13 million, in accordance with Crunchbase, from backers like Serena Williams, Alumni Ventures and Techstars. SoLo Funds declined remark.
