SoLo Funds: A Debt Trap Story
A troubled payday predator finds itself in trouble again
What happens when a predatory lender is shut down in Connecticut and fined for misconduct in two other states?
What happens when that same payday predator catches the eye of the Consumer Financial Protection Bureau (CFPB)?
What happens when SoLo Funds is called on the carpet for brokering short-term loans with effective interest rates as high as 4000% APR?
The predator who profits from preying on the working poor plots a return.
When consumers reach the part of the application that asks them to pay a fee to SoLo, consumers only see options for what percentage to give — none of the options is zero.
SoLo funds now charges up to 1000% interest on some of its loans — a rate that far exceeds even the most egregious state rate caps (like Tennessee’s of 460%).
