{"id":2405358,"date":"2025-02-21T18:45:00","date_gmt":"2025-02-21T23:45:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-cfpb-dismisses-case-against-community-focused-financial-lending-company-washington-examiner\/"},"modified":"2025-02-21T18:47:33","modified_gmt":"2025-02-21T23:47:33","slug":"trumps-cfpb-dismisses-case-against-community-focused-financial-lending-company-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trumps-cfpb-dismisses-case-against-community-focused-financial-lending-company-washington-examiner\/","title":{"rendered":"Trump\u2019s CFPB dismisses case against community-focused financial lending company &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftrumps-cfpb-dismisses-case-against-community-focused-financial-lending-company-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2405358&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Consumer Financial Protection Bureau (CFPB), under President Trump, has dismissed a case against SoLo Funds, \u200da peer-to-peer financial lending platform.This case had initially been brought by\u200b former \u2063President Biden\u2019s CFPB in May 2024, which\u200b accused \u200cSoLo of deceiving borrowers by\u200d using a feature \u2062in its app that allowed users to\u200b give tips or donations, thus allegedly disguising interest on loans.SoLo Funds denied these allegations, \u2063claiming that many loans were \u200dfunded \u200dwithout any tips \u2063or donations. The \u2062lawsuit considerably impacted SoLo, leading\u200c to a 30% workforce reduction due to legal costs exceeding $3 million. SoLo asserts\u200d its importance as a large black-owned fintech company, \u2063gaining political support for its role in providing financial access to undercapitalized Americans.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Trump&rsquo;s CFPB dismisses case against <a href=\"https:\/\/amzn.to\/3YuVZYV\">community-focused financial lending company<\/a><\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2016107\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>President <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\" target=\"_blank\" rel=\"noopener\" title=\"Donald Trump's\">Donald Trump&rsquo;s<\/a> Consumer Financial Protection <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/cfpb\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Bureau<\/a> dismissed a case against a community-focused <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/finance\" target=\"_blank\" rel=\"noopener\" title=\"\">financial<\/a> lending company on Friday.<\/p>\n<div class=\"article-paywall\">\n<p>SoLo Funds is a peer-to-peer financial lending platform, boasting over 2 million downloads of its app on its website. In May 2024, former President Joe Biden&rsquo;s CFPB sued the company, alleging it was deceiving borrowers and illegally extracting fees.<\/p>\n<p>The app feature in question allows users to give a &ldquo;tip&rdquo; to the lender or a &ldquo;donation&rdquo; to SoLo. Biden&rsquo;s CFPB argued that the feature represented a shadowy way to make users pay interest on loans.<\/p>\n<p>&ldquo;The CFPB is suing SoLo for using digital trickery to hide interest and fees on its online loans,&rdquo; Former CFPB Director Rohit Chopra said in a May <a href=\"https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-sues-solo-funds-for-deceiving-borrowers-and-illegally-extracting-fees\/\" target=\"_blank\" rel=\"noopener\" title=\"press release\">press release<\/a>. &ldquo;SoLo has had repeated run-ins with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-admin-will-not-require-fbi-checks-for-child-migrant-caretakers-at-temporary-hhs-facilities\/\" title=\"Biden Admin Will Not Require FBI Checks For Child Migrant Caretakers At Temporary HHS Facilities\">state regulators<\/a>, and we are putting a stop to their fake tipping scheme.&rdquo;<\/p>\n<p>SoLo Funds denied any wrongdoing. Thousands of loans have been funded without the borrower offering a tip to the lender, and hundreds of thousands have been funded with no donation to SoLo.<\/p>\n<p>An analysis from the CFPB found that the average tip offered on a $100 loan was $10.40 and the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/amid-threats-of-corporate-donation-withdrawals-gop-senate-fund-hauls-in-8-3-million\/\" title=\"Amid Threats Of Corporate Donation Withdrawals, GOP Senate Fund Hauls In .3 Million\">average donation<\/a> was $6.20.<\/p>\n<p>The legal battle that ensued over the lawsuit, along with the negative publicity it drew, had a major impact on SoLo&rsquo;s operations. It laid off 30% of its workforce to stave off bankruptcy, and the over $3 million in legal costs pushed the company to reallocate resources.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><\/a><strong><a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/3231974\/high-interest-rates-could-bedevil-trump-debt-rises\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>HIGH INTEREST RATES COULD BEDEVIL TRUMP AS DEBT RISES<\/strong><\/a><\/strong><\/p>\n<p>SoLo <a href=\"https:\/\/www.cnbc.com\/2023\/05\/09\/solo-funds-disruptor-50.html\" target=\"_blank\" rel=\"noopener\" title=\"\">boasts<\/a> that it is the largest black-owned financial technology company, an attribute that won it the support of some congressional Democrats. Rep. Jonathan Jackson (D-IL) vouched for the company in a September <a href=\"https:\/\/solofunds.com\/congressional-letter-to-cfpb-director\/\" target=\"_blank\" rel=\"noopener\" title=\"letter\">letter<\/a>.<\/p>\n<p>&ldquo;While SoLo Funds&rsquo; business model is different from other <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hackers-steal-130-million-from-crypto-protocol-cream-finance\/\" title=\"Hackers Steal 0 Million from Crypto Protocol Cream Finance\">lending platforms<\/a> that state or federal regulators may have encountered, their ability to provide financial access to undercapitalized Americans is far-reaching and important. I hope you will work with the SoLo Funds team to find fair, meaningful regulation that allows for them to operate in a robust way across the country so that innovation across this field can continue,&rdquo; he wrote.<\/p>\n<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_2016107\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"2016107\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trump&#8217;s CFPB drops case against community lending firm SoLo<\/p>\n","protected":false},"author":2653,"featured_media":2405359,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/02\/AP25052038808880.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[50142,50848,50847,3634],"class_list":["post-2405358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-cfpb","tag-community-focused","tag-financial-lending","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/02\/AP25052038808880.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2405358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2653"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2405358"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2405358\/revisions"}],"predecessor-version":[{"id":2405362,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2405358\/revisions\/2405362"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2405359"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2405358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2405358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2405358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}