Attorney General Michelle Henry has announced the issuance of restitution payments to over 1,300 consumers in Pennsylvania who used SoLo Funds, an online lending platform based in California. The action follows a settlement reached on July 1, 2024, between Attorney General Henry and SoLo Funds, which involved allegations of violations of Pennsylvania's usury and consumer protection laws.
The Office of Attorney General distributed $158,924 in restitution to 1,309 consumers. SoLo Funds operates as a "community finance platform," facilitating small-dollar loans with repayment terms of up to 35 days. Borrowers can pay tips to lenders and donations for the platform's maintenance. The Commonwealth alleged that this model effectively charged excessive interest rates, breaching state laws such as the Loan Interest Protection Law and Consumer Discount Company Act.
Additional allegations included misleading representations about finance charges and deceptive advertising claiming loans had "0% APR" with "no finance charge." The settlement required SoLo to adjust its business practices to comply with state law. As part of the agreement filed in Philadelphia Court of Common Pleas, SoLo paid $25,000 in civil penalties and $25,171.51 for investigation costs. Moreover, it stopped collecting unpaid amounts from Pennsylvania borrowers or lenders, totaling over $530,000.
Eligible consumers received their checks on December 18, 2024. For further inquiries regarding the restitution distribution from SoLo Funds, individuals are advised to visit the settlement administrator’s website or contact them at 833-472-1993.