Consumer complaint received 2026-05-13 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Confusing or missing disclosures — 
Company: SoLo Funds Inc.
State: AZ

Complaint narrative:
XX/XX/year> Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Re : Complaint Against SoLo Funds Undisclosed Lender Fees, Structurally Coercive Fee Model, Deceptive Practices Company : SoLo Funds ( solofunds.com ) Account Type : Lender Account To Whom It May Concern, I am submitting this complaint against SoLo Funds, a peer-to-peer lending platform operating at solofunds.com. I have been an active lender on the platform since XXXX XXXX and have experienced a pattern of undisclosed fees, misleading disclosures, and what I believe to be a structurally deceptive fee model that disproportionately penalizes lenders while offering borrowers no equivalent accountability. ISSUE 1 : LENDER FEES ARE NOT DISCLOSED IN THE LOAN AGREEMENT SoLo Funds presents lenders with a standard Loan Agreement and Promissory Note at the time each loan is funded. I have reviewed this agreement carefully and can confirm that it contains XXXX disclosure of any fees that may be charged to the lender. The loan agreement in its entirety identifies the following fee obligations all of which apply exclusively to the borrower : Late Fee ( 15 % of principal or {$5.00}, whichever is greater ) charged to the borrower Transaction Fee ( 2x [ 0.9 % of principal + {$0.00} ] ) charged to the borrower Returned Payment Fee ( {$15.00} ) charged to the borrower There is no mention anywhere in the loan agreement of any fee that could be assessed against the lender under any circumstance. A lender reviewing this document has every reasonable basis to conclude that they are not subject to any platform-imposed fees. Despite this, SoLo Funds imposes a fee of 12 % to 15 % of the loan principal on lenders when a borrower is late a fee that entirely eliminates, and in some cases exceeds, the tip income the lender expected to earn. This fee was not disclosed in the loan agreement, is not referenced at the point of loan funding, and was not communicated to me until after it had been applied to my account. This constitutes a material omission in financial disclosure and a deceptive practice under the Consumer Financial Protection Act 's prohibition on Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ). ISSUE 2 : THE FEE STRUCTURE IS STRUCTURALLY COERCIVE Even setting aside the lack of disclosure, the mechanics of how this fee is applied reveal a model that is structurally unfair to lenders. Here is how it actually works : The 35-Day Window : The loan agreement grants borrowers a 35-day repayment term from the funding date. During this window, the borrower faces no late fees whatsoever as confirmed by the agreements own terms. The lender, however, has no equivalent grace period. If a borrower repays even one or two days past their agreed repayment date, the lender is immediately assessed the 12 % 15 % fee. The Asymmetry : The borrower has 35 days before any penalty applies to them. The lender is penalized the moment the borrowers self-selected due date passes even if the loan is still within the 35-day contractual window. The borrowers fees ( when they do apply after 35 days ) accrue to the platform, not to the lender. The lender receives no compensation for the borrowers lateness. The Only Two Choices for Lenders : SoLo Funds has structured a system in which lenders have essentially two options to avoid the late fee : 1. Hope that the borrower pays on exactly the agreed due date a circumstance entirely outside the lenders control ; or 2. Pre-purchase SoLo Lender Protection ( SLP ) at a cost of 5 % to 6 % of the loan principal, paid upfront. In practical terms, this means that a lender who does not purchase SLP is routinely penalized for borrower behavior they can not control. The only way to avoid the penalty is to pay a protection fee in advance. This is not a voluntary product it is effectively a mandatory cost of doing business on the platform, disguised as optional. This is a textbook example of an abusive practice : SoLo Funds leverages an information asymmetry and structural imbalance to extract additional fees from lenders who reasonably believed they had no exposure to platform-imposed charges. ISSUE 3 : INCONSISTENT FEE DISCLOSURES FROM CUSTOMER SERVICE Upon contacting SoLo Funds customer service and their automated IQ Chat Bot to understand the fee structure, I received materially inconsistent information : One representative cited the late fee as 15 % ; another cited 12 % The threshold at which Lender Protection is waived was stated as the first XXXX loans in XXXX interaction, then corrected to XXXX loans in another This inconsistency in the disclosure of material financial terms further demonstrates that SoLo Funds does not have clear, accurate, or accessible fee disclosures and that the companys own representatives can not reliably explain the fee model to lenders. ISSUE 4 : PATTERN OF NON-RESPONSIVE CUSTOMER SERVICE I have contacted SoLo Funds customer service on multiple occasions regarding these issues. In each instance, I received generic, templated responses that failed to engage with the specific questions I raised. No written explanation of the lender fee structure has been provided. No refund or credit has been offered. No representative has been able to provide documentation of where, in any agreement I signed, the lender fee is disclosed. FINANCIAL HARM As a direct result of these undisclosed fees, I have sustained measurable financial losses. During my current lending period, XXXX of XXXX active loans are late. The 12 % has been applied to those loans; eliminated all tip income I expected to earn and resulted in a net loss on lending activity I undertook in good faith, based on the terms disclosed to me at the time of funding. I am happy to provide screenshots of all loans I have been accessed this fee, not certain if necessary for this purpose?

Company response to consumer: Closed with explanation