U.S. Consumer Agency Drops Lawsuit Against Online Lender Solo Funds
The Consumer Financial Protection Bureau (CFPB), an agency President Trump has targeted for elimination, has withdrawn a lawsuit against online lending platform Solo Funds. The agency had initially accused Solo Funds of misleading borrowers about loan costs.
This case, filed less than a year ago, marks the first withdrawal since the Trump administration assumed control of the CFPB earlier this month. The administration has halted operations, laid off employees, and removed the agency's signage from its headquarters in Washington, D.C.
Multiple state attorneys general have also taken action against the agency over similar allegations since 2023.
Representatives from the CFPB and Solo Funds have not responded to requests for comment.
The CFPB alleged that Solo Funds misrepresented loan costs, tricked borrowers into making optional "donations," made false threats, and attempted to collect funds that customers did not owe. The company denied these claims in court filings.
A joint motion filed on Friday by both parties states that the case will be dismissed with each side covering their own legal expenses.