Protecting the Rights of Consumers For Over 25 Years

On February 22, 2019, the Federal Trade Commission entered into a consent order with online lender Social Finance, Inc. (“SoFi”) concerning SoFi's student loan refinancing practices. The FTC alleged that SoFi made false statements in advertising regarding the amount student loan borrowers could save by refinancing with SoFi. The FTC alleged that SoFi made “prominent, unqualified” false statements about loan refinancing savings in Internet, television, and direct mail advertisements. The FTC alleged that the figures were bogus, in that SoFi arrived at the cited figures by selectively excluding large categories of consumers in its calculations. For example, when SoFi made lifetime savings claims, it excluded borrowers whose SoFi loans had a longer term than the previous student loans those consumers refinanced. Longer term loans are used to reduce monthly payments but can be much more expensive.

Under the FTC consent order, SoFi agreed to stop advertising about how much money student loan borrowers have saved or will save from refinancing their loans, except where it had reliable supporting evidence.

If you are being sued on a SoFi loan, and believe that you were misled, please contact us.