Attorney General Michelle Henry of Pennsylvania has announced the issuance of restitution payments totaling $158,924 to 1,309 consumers following a settlement with SoLo Funds, Inc., a California-based online lending platform.
The settlement stems from allegations that SoLo violated state usury and consumer protection laws. The company was accused of operating a community finance platform that imposed excessive interest rates by using tip and donation features tied to loans, circumventing legal limits on interest rates under Pennsylvania’s Loan Interest Protection Law and Consumer Discount Company Act.
In addition to the restitution, SoLo will pay $25,000 in civil penalties and $25,171.51 to cover investigation costs. The company has also ceased collection efforts on over $530,000 in loans involving Pennsylvania borrowers or lenders, which includes the principal, tips, donations, and fees.
The settlement was formalized through an Assurance of Voluntary Compliance in the Philadelphia Court of Common Pleas, with SoLo agreeing to amend its business practices to comply with Pennsylvania laws.