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CFPB Action Against SoLo Funds: In 2024, the Consumer Financial Protection Bureau took action against SoLo Funds, alleging the platform disguised high-cost loans as "tips and donations" — with effective APRs ranging from 36% to over 1,000%. If you're looking for a transparent, lender-friendly alternative, you're in the right place. Read our full breakdown →
SoLo Funds Alternative

Looking for a SoLo Funds alternative? Meet PayPact.

PayPact is the peer-to-peer lending platform built on transparency. No hidden fees dressed up as tips. No mystery APRs. You set the rate, you see every number, and every repayment builds a verifiable trust score.

Lenders keep more. Borrowers know exactly what they owe. Everyone wins.

The SoLo Funds problem, explained plainly

36–1,000%+

⚠ Hidden APR

The CFPB found that SoLo's "voluntary" tips and donation requests functioned as mandatory loan fees. When calculated as APR, the effective rates ranged from 36% to over 1,000% — figures that were never disclosed to borrowers at origination.

Not Yours

⚠ Rates Set by the Platform

On SoLo, borrowers set a "tip" to attract lenders, but the platform's own structure determines what's competitive. Lenders have no ability to negotiate real interest rates or protect their returns with transparent terms.

Opaque

⚠ No Real Accountability System

SoLo's lender scores are basic and not built on verifiable payment history over time. High default rates have led to lenders losing significant portions of their deployed capital with limited recourse.

Strangers

⚠ Marketplace Model Risks

SoLo connects you with unknown borrowers in a marketplace format. There's no built-in mechanism for lending within trusted personal or professional networks — which is where most P2P lending naturally happens.

SoLo Funds vs PayPact

SoLo Funds

What you got

Hidden fees as "tips" — effective APR up to 1,000%+ per CFPB findings. What looks voluntary often isn't.
No real interest rates — borrowers set tips to attract lenders, but there's no transparent rate negotiation.
Marketplace lending to strangers — high default risk with basic accountability tools.
Basic reputation scores — not built on verifiable, long-term payment track records.
No multi-party agreements — single lender, single borrower only.
PayPact

What you get

Flat 2% platform fee — disclosed upfront, calculated into the pact terms. No surprise charges, no disguised APR.
Custom interest rates you control — lenders set real rates, borrowers agree or negotiate. Transparent terms from day one.
Lend within your network — structured agreements with people you know and choose to trust.
Trust Score built on real data — on-time payment rate, pacts completed, total repaid. Verifiable and persistent.
Multi-party agreements — set up pacts with multiple parties, share goals, split contributions.

How PayPact stacks up across the board

Feature SoLo Funds Zirtue Venmo / CashApp PayPact ✦
Transparent fee structure No (hidden in tips) Yes Yes Yes — flat 2%
Custom interest rates No 0% only No Yes — you set them
Structured repayment terms Basic Yes No Yes
Trust / reputation score Basic No No Core feature (0–100)
Multi-party agreements No No No Yes
Lend to people you know Marketplace only Yes No repayment tracking Yes
CFPB complaint history Yes — enforcement action 2024 None None None

Three principles SoLo Funds never had

💡

Full Fee Transparency

PayPact charges a flat 2% platform fee, shown to both parties before they agree to anything. The interest rate, repayment schedule, and total cost are all part of the pact — no post-agreement surprises.

🎯

You Set the Rate

There are no tip requests, no donor suggestions, no platform-pressured amounts. Lenders set real interest rates. Borrowers see real numbers. Both parties accept terms they chose — not terms a platform optimized for volume.

📈

Trust Score That Compounds

Every on-time payment raises your Trust Score (0–100). Lenders can see your full payment history before agreeing to terms. Borrowers who build a strong score unlock better rates from willing lenders. It's a reputation engine, not a black box.

Deep Dive

Why P2P Lenders Are Leaving SoLo Funds (And Where They're Going)

The full story on the CFPB action, what it means for lenders and borrowers, and how to protect yourself.

Ready for a P2P lending platform that's actually transparent?

Join PayPact and start building a trust score that works for you — not against you. Create your first pact free.

Create Your First Pact →
Free to sign up. No credit check. No hidden fees.