Pennsylvania victims receive restitution in settlement with online lending platform
Dollar bills background. Pile of american money cash. One hundred usd dollars banknotes. Financial and economic crisis

Pennsylvania victims receive restitution in settlement with online lending platform

Posted by
1 min read
December 30, 2024

HARRISBURG, Pa. — Over 1,300 Pennsylvania consumers who borrowed money through SoLo Funds, Inc., an online peer-to-peer lending platform, have received restitution payments following a settlement with the state, Attorney General Michelle Henry announced on Monday.

The settlement, reached on July 1, alleged that California-based SoLo Funds violated Pennsylvania’s usury and consumer protection laws by using a “tip and donation” model that effectively charged excessive interest rates on small-dollar loans. In total, $158,924 in restitution funds has been distributed to 1,309 Pennsylvania borrowers.

SoLo Funds allows users to borrow small amounts of money, typically repayable within 35 days, while agreeing to optional tips for lenders and donations to the platform. The Pennsylvania Office of Attorney General alleged that these practices circumvented state loan interest caps, violating the Loan Interest Protection Law and Consumer Discount Company Act. The office also accused SoLo of deceptive practices, including falsely advertising loans as “0% APR” with “no finance charge.”

Under the terms of the settlement, filed in the Philadelphia Court of Common Pleas, SoLo agreed to reform its business practices to comply with Pennsylvania law. The company paid $25,000 in civil penalties and over $25,000 in investigative costs, and it ceased collection efforts on more than $530,000 in outstanding loans, tips, donations, and fees involving Pennsylvania borrowers and lenders.

“This settlement ensures Pennsylvania borrowers are protected from deceptive and predatory practices in online lending,” Attorney General Henry stated, adding that her office will continue monitoring compliance with state lending laws.

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.

Facebook

Don't Miss