SoLo Funds was thrown into a new class action lawsuit, copied and seen by TechCrunch as first reported in a piece by Bloomberg.
It complains that SoLo Funds operates deceptively, touting zero interest fees on loans yet nudging customers into "tip fees" and "donation fees" to secure those loans. The complainant says these amounts are hidden fees that the company makes punitive to opt out of, thus making its loans costlier than borrowers bargained for.
As TechCrunch previously reported, the company has already been sued by Connecticut, California, and the Consumer Financial Protection Bureau (CFPB). In May, the CFPB alleged the company used "digital dark patterns" to mislead consumers and take fees illegally despite advertising no fees. SoLo Funds settled those earlier suits with all but the CFPB.
SoLo has raised at least $13 million from backers such as Serena Williams, Alumni Ventures, and Techstars, according to Crunchbase. SoLo Funds declined to comment.