From the Trump Administration's acting director of the CFPB:
Over the last four years, many working class Americans with limited means faced unexpected medical bills, auto repairs & higher grocery bills. One company set up an innovative solution by creating a platform to allow borrowers & lenders to connect for loans at no interest, with borrowers able to tip the lender and also donate to keep the platform going.
Shockingly, the CFPB tried to destroy this company, SoLo, which incurred millions in legal fees and had to lay off 30% of its workforce. It was wrong and we dismissed the case. More to come but the weaponization of "consumer protection" must end.
Readers added context they thought people might want to know
SoLo advertised "zero-interest loans," but "almost all of SoLo’s loans carry an equivalent annual percentage rate of over 36% APR, and many loans carry an APR in excess of 300%, with some over 1,000%."
... hundreds of SoLo users and officials in three states and Washington D.C. say the company has broken its promise. Several lawsuits plus internal turmoil and claims of suspicious business practices have raised questions about who ultimately benefits from the services SoLo Funds provides, and who may be harmed.
On October 16, a class action lawsuit was filed against the company alleging that SoLo Funds’ lending practices are “unlawful and deceptive.” Per the suit, SoLo Funds led customers to believe they were signing up for an interest free-loan, however, most borrowers end up paying a fee masked in the form of “tips” to the lender and “donations” to the company.