Core Viewpoint - SoLo Funds is currently engaged with the New York attorney general's office regarding concerns over usury practices, following a subpoena received this year [1][2]. Group 1: Regulatory Engagement - The company is in negotiations with the New York attorney general's office to find common ground on regulatory concerns [2]. - SoLo Funds aims to clarify its operations to New York regulators, emphasizing that it does not operate in a nefarious manner and highlighting its community finance platform [3]. Group 2: Business Model and Legal Challenges - SoLo Funds' business model, which includes a "tip" structure, has attracted scrutiny from regulators in multiple states, who view it as a form of predatory lending [3]. - The company has previously reached agreements with regulators in California, Washington D.C., Connecticut, and Pennsylvania regarding allegations of requiring large "tips" for loan access [4]. - In May 2024, SoLo Funds was sued by the Consumer Financial Protection Bureau (CFPB) over its "tip" structure, which was criticized for obscuring the total cost of loans [4][5]. Group 3: Changes and Legal Outcomes - The CFPB alleged that SoLo Funds misled borrowers about the option to forgo a tip and provided loans in states requiring licensing [5]. - Following the lawsuit, SoLo Funds made changes to its platform as per the CFPB's feedback [5]. - The lawsuit was eventually dismissed under the Trump administration, with the acting director of the CFPB stating that the previous bureau's actions were unjust and had significant negative impacts on the company [6].