SoLo Funds is facing a new class action lawsuit according to a copy seen by Read and first reported by Bloomberg.
It accuses SoLo Funds of misleading consumers by advertising zero interest fees on loans yet encouraging “tip fees” and “donation fees” to obtain said loans. The complaint alleges these are hidden fees that the company makes hard to opt out of, making their loans more expensive than borrowers expected.
As Read previously reported, the company has been sued by Connecticut, California, and the Consumer Financial Protection Bureau (CFPB). In May, the CFPB alleged the company used “digital dark patterns” to mislead consumers and illegally take fees, despite advertising there were no fees. SoLo Funds settled these earlier suits with all but the CFPB.
SoLo has raised at least $13 million, according to Crunchbase, from backers like Serena Williams, Alumni Ventures and Techstars. SoLo Funds declined comment.
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