Online student loan refinancer SoFi has agreed to no longer misinterpret how much money student borrowers have saved or will save before refinancing their loans with the company to pay for the Federal Trade Commission`s fees, which they have been falsely advertising for more than two years. In addition to misleading advertising, SoFi also misunderstood when consumers would actually pay more under certain refinancing plans. Consumers who visited the SoFi website and were pre-approved for a loan were often redirected to a website that displayed the credit options they had pre-qualified for. The complaint alleges that the website mishanded credit options for which consumers would pay more each month or over the duration of the loan – wrongly stating that consumers` lifetime or monthly savings would be « 0.00 ». According to the FTC, one online SoFi ad claimed that « refinancing student loans saves an average of US$22,359, » while another ad told readers, « Start saving on your student loans. Average monthly savings of $292. In a lawsuit filed against Social Finance, Inc. and its subsidiary SoFi Lending Corp., the FTC claimed that it had made significant false statements since at least April 2016 about refinancing credit savings in television, print and internet advertising. Subsequently, the Commission will decide whether the proposed approval is final. The Commission voted in favour of the administrative complaint and the acceptance of the approval agreement by 5 to 0. Commissioner Rohit Chopra made a separate statement. The Federal Trade Commission strives to promote competition and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by phone at 1-877-FTC-HELP (382-4357).
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