SoLo Funds faces a new class action lawsuit according to a copy seen by TechCrunch and first reported by Bloomberg.
It accuses SoLo Funds of misleading consumers by advertising zero interest charges on the loans, while encouraging “tipping fees” and “donation fees” to obtain said loans. The complaint alleges that these are hidden fees that the company makes difficult to avoid, making its loans more expensive than borrowers expected.
As TechCrunch previously reported, the company was sued by Connecticut, California, and the Consumer Financial Protection Bureau (CFPB). In May, the CFPB alleged that the company used “dark digital patterns” to deceive consumers and illegally collect fees, despite advertising that there were no fees. SoLo Funds has settled these prior disputes with all but the CFPB.
SoLo has raised at least $13 million, according to Crunchbase, from backers including Serena Williams, Alumni Ventures and Techstars. SoLo Funds declined to comment.