Predatory Fintech Lender SoLo Funds Plots Return to DC, California
SoLo was charging interest rates in excess of 500%
Fintech lender SoLo Funds, a company that was shut down from doing business in Connecticut because its loans sometimes had interest rates of 4000% APR, has announced plans to return to doing business in both the District of Columbia and California.
Based on Connecticut’s analysis of loans facilitated in the state, the typical principal amount was $100, with an average ‘lender tip’ of $21 and an average ‘donation’ to Solo of $10 — equating to APRs that ranged from 43% to as much as 4,280%.
Here’s more on SoLo’s settlement with DC, where the Attorney General’s office found the lender charging in excess of 500% APR for short-term loans:
DC Attorney General Brian Schwalb noted that SoLo Funds used a lending model based on tips in order to hide the true cost of loans offered on the platform. Often, the interest rates on these loans would exceed 500% — far in excess of the rate cap in DC of 24%.
“Our office will not tolerate Fin-tech lenders resorting to new, deceptive practices that adversely…
