May 12, 2022
American Banker
If there is truth to new allegations claiming peer-to-peer lending fintech Solo Funds solicites supposedly voluntary “tips” for small loans and only gives loans to those who pay tips, those tips will “start to look like a finance charge,” Partner Allen Denson tells American Banker.
“And once you have a finance charge, you have this whole parade of horribles that make it look like you're doing high-APR lending,” he adds.
The Connecticut regulatory agency taking action against the fintech also said Solo Funds doesn’t have the licenses it needs to lend and perform collections in the state.
That’s an unusual position for a state agency to take toward a lending marketplace, Allen says.
Click here to read more. (Subscription required).
May 12, 2022
American Banker
If there is truth to new allegations claiming peer-to-peer lending fintech Solo Funds solicites supposedly voluntary “tips” for small loans and only gives loans to those who pay tips, those tips will “start to look like a finance charge,” Partner Allen Denson tells American Banker.
“And once you have a finance charge, you have this whole parade of horribles that make it look like you're doing high-APR lending,” he adds.
The Connecticut regulatory agency taking action against the fintech also said Solo Funds doesn’t have the licenses it needs to lend and perform collections in the state.
That’s an unusual position for a state agency to take toward a lending marketplace, Allen says.
Click here to read more. (Subscription required).
