SoLo Funds, a fintech startup that has raised over $13 million from prominent backers, is facing a new class action lawsuit alleging it misled consumers with deceptive loan practices. The lawsuit, first reported by Bloomberg, accuses SoLo Funds of advertising zero-interest loans while encouraging "tip fees" and "donation fees" that make the loans more expensive than borrowers expected.

This is not the first time SoLo Funds has faced legal trouble. The company has already been sued by Connecticut, California, and the Consumer Financial Protection Bureau (CFPB) over similar allegations. In May, the CFPB accused SoLo Funds of using "digital dark patterns" to mislead consumers and illegally take fees, despite advertising no fees. SoLo Funds settled these earlier suits with all but the CFPB.

The new lawsuit raises concerns about the transparency and fairness of fintech companies, particularly those that offer loans to consumers. It also highlights the importance of regulatory oversight in the industry. SoLo Funds' investors, including tennis star Serena Williams, Alumni Ventures, and Techstars, will be watching this case closely.

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Topics: SoLo Funds, fintech, startup, lawsuit, loan practices, Consumer Financial Protection Bureau, regulatory oversight, Serena Williams, Alumni Ventures, Techstars.