Settlement Reached: AG Henry Addresses Illegal Loan Practices by California-Based Lender

Posted by
1 min read
July 23, 2024

HARRISBURG, PA — Attorney General Michelle Henry has announced a significant settlement with SoLo Funds, Inc., a California-based lending platform accused of deceptive loan practices. The agreement addresses issues surrounding the company’s tip and donation features, which allegedly misled borrowers into paying inflated interest rates under the guise of interest-free loans.

SoLo Funds markets itself as a community finance platform, offering short-term loans with repayment terms of 35 days or less, where borrowers can “tip” lenders and donate to the platform’s maintenance. However, the Pennsylvania Office of Attorney General charged that these practices violated state lending laws by disguising high interest rates as optional tips and donations.

Under the settlement terms, SoLo Funds will overhaul its business practices in Pennsylvania. This includes stopping any loan offers exceeding the interest rates allowed by state laws, ceasing misleading advertising about loan costs, and halting improper debt collection practices. Additionally, SoLo will make partial restitution to affected consumers and pay civil penalties and costs.

“This settlement will put an end to SoLo’s deceptive practices, ensuring they no longer mislead Pennsylvania consumers or engage in illegal lending activities,” said Attorney General Henry. The agreement marks a proactive step towards protecting consumers and maintaining fair lending standards within the state.

Phil Stilton

Phil Stilton is the Editor and Publisher of Shore News Network, an independent digital newsroom providing original reporting on New Jersey, national news, government, public policy, public safety, courts, and community affairs.

As founder of the publication, Stilton leads editorial strategy, investigative reporting, and daily newsroom operations while overseeing coverage that reaches millions of readers annually.

With extensive experience covering municipal government, county government, state legislatures, elections, law enforcement, emergency management, and public records, Stilton specializes in translating complex government actions into clear, factual reporting. His work frequently relies on primary source documents, including court filings, legislation, public meeting records, election finance disclosures, government databases, police reports, and Freedom of Information and Open Public Records Act (OPRA) requests. He has reported extensively on local government accountability, taxpayer spending, campaign finance, public corruption investigations, infrastructure, public safety, and the policies affecting New Jersey residents.

Under Stilton's editorial leadership, Shore News Network has grown into one of New Jersey's largest independent digital news organizations, publishing thousands of original news articles each year while providing breaking news coverage, investigative reporting, and analysis across state and local government. The publication's reporting is routinely sourced from official government agencies, public officials, court records, and firsthand documentation, with a commitment to transparency, attribution, corrections when warranted, and clearly distinguishing factual reporting from opinion.

Stilton's journalism follows established newsroom standards emphasizing accuracy, verification, fairness, and accountability. Every effort is made to verify information through official records and multiple reliable sources before publication. His reporting is intended to provide readers with timely, well-documented information that helps them understand the issues affecting their communities, while maintaining editorial independence from political parties, government agencies, advocacy organizations, and commercial interests.

Readers can submit story tips, corrections, public records, or media inquiries through the official Shore News Network website or its verified social media channels. Shore News Network welcomes corrections and updates when new information becomes available as part of its ongoing commitment to accurate and transparent journalism.

Don't Miss