PANews reported on February 22 that according to Bloomberg, court documents showed that the U.S. Consumer Financial Protection Bureau (CFPB) and peer-to-peer lending platform SoLo Funds agreed to terminate the agency's lawsuit against the company under a complete cessation of law enforcement actions.

The CFPB’s lawsuit against the Los Angeles-based fintech company has been ongoing since May 2024. While SoLo Funds bills itself as a third-party platform that connects borrowers with lenders without charging mandatory fees or interest, according to the CFPB’s complaint, the total cost of some loans serviced by SoLo Funds equates to an annual percentage rate of more than 1,000%.

SoLo Funds is the first of many enforcement proceedings the regulator plans to halt. Just this month, the CFPB canceled contracts with all expert witnesses in existing enforcement proceedings, while clearing out more than $100 million in contracts within the agency.

The CFPB initially requested a stay of the SoLo Funds lawsuit while it reviews all of its enforcement actions, but SoLo Funds objected, and the judge in the case, U.S. District Court for the Central District of California Judge Gary R. Klausner, denied the request in an early February ruling.

That month, Trump administration officials began dismantling the Consumer Financial Protection Bureau, which was created by Sen. Elizabeth Warren to protect consumers after the 2008 financial crisis. The administration fired the bureau’s director and dozens of other employees and closed its Washington headquarters. However, plans to lay off more than 1,500 employees at the CFPB were recently shelved.