Following a public comment period, the Federal Trade Commission has approved a final consent order with SoFi, resolving allegations that it misrepresented how much money student loan borrowers have saved or will save from refinancing their loans with the company.
In its October 2018 complaint, the FTC alleged that SoFi made prominent false statements about loan refinancing savings in television, print, and internet advertisements. The complaint also alleged that the average savings SoFi touted in its ads inflated the actual average savings – sometimes even doubling it – by excluding large categories of consumers.
Under the final order, SoFi is prohibited from misrepresenting to consumers how much money consumers will save or have saved using its products and from making any claims about any such savings unless the claims are backed up with reliable evidence.
The Commission voted 5-0 to approve the final consent order and the letters to commenters.
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