Sofi Loan Agreement
„Student credit debt is a huge problem facing students and graduates across the country,“ said Joe Simons, president of the FTC. „Lenders offering refinancing options should first discuss savings with students. They cannot make misleading statements and cannot bury the truth in the fine print. In a complaint filed against Social Finance, Inc. and its subsidiary SoFi Lending Corp., the FTC claimed that, since at least April 2016, it had made gross false accounts about credit-financed savings in television, print and internet advertisements. The FTC will soon publish a description of the agreement package in the Federal Register. The agreement will be subject to public comment for a period of 30 days, from today until November 28, 2018, after which the Commission will decide whether the proposed authorization order should be finalized. In addition to misleading advertising, SoFi also misrepresented when consumers would actually pay more under certain refinancing plans. Consumers who visited SoFi`s website and received prior authorization for a loan were often redirected to a website showing the credit options for which they had qualified in advance. The complaint accuses the website of misrepreshaving the credit options for which consumers would pay more each month or over the life of the loan – incorrectly stating that the consumer`s monthly life or savings would be „0.00“. According to the FTC, an online sofi ad stated that „refinancing student loans saves an average of $22,359,“ while another ad told readers, „Start saving on your student loans. Average monthly savings of $292. Online student credit refinancingr SoFi has agreed not to misrepresent how much student loan money borrowers have saved or will save on refinancing their loans with the company to pay Federal Trade Commission fees that they have misrepresented for excessive figures for more than two years. SoFi, for example, excluded borrowers with longer loans than previous student loans that these consumers refinanced. These borrowers would generally pay more money – on average thousands of dollars more – over the life of the loan, the FTC said.
When SoFi revealed these exclusions, the revelations were often buried in small print. The Commission voted to grant the administrative appeal and accept the approval agreement by 5 to 0. Commissioner Rohit Chopra made a separate statement. As part of the proposed comparison with the FTC, SoFi is prohibited from avoiding consumers the amount of money consumers save or have saved with SoFi products and from making any claims about such savings unless they are supported by reliable evidence. Once the transaction is completed, if the company violates the order, it could expect civil penalties. iPhone is a trademark of Apple Inc. registered in the United States and other countries. App Store is a service mark of Apple Inc. The FTC accuses SoFi`s accused of violating the FTC Act. The Federal Trade Commission is committed to competition and protects and trains consumers. You can learn more about consumer issues and file a complaint online or by phone at 1-877-FTC-HELP (382-4357).
Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources. NOTE: The Commission issues an administrative appeal where it has „reason to believe“ that the law has been or will be broken, and it appears to the Commission that a procedure is in the public interest.