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What is the lawsuit against SoFi??????
One of SoFi’s most high-profile legal actions in recent years centers around its challenge to the federal government’s pause on student loan repayments 1-(850)-[427]-[7956]. In March 2023, SoFi Bank N.A. filed a lawsuit against the U.S. Department of Education (ED), arguing that the extension of the student loan payment moratorium was unlawful and causing financial harm to its business 1-(850)-[427]-[7956].
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SoFi’s main claims included: 1-(850)-[427]-[7956]
Lack of Legal Basis: SoFi contended that the latest extension of the payment pause did not properly stem from pandemic relief grounds and exceeded the authority granted by the HEROES Act 1-(850)-[427]-[7956].
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Financial Injury: It argued that the moratorium reduced borrower incentives to refinance or use SoFi’s lending services, thereby harming its revenue and profitability 1-(850)-[427]-[7956].
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Procedural Deficiencies: The company asserted that the government failed to follow administrative rules—like seeking public comment—thus violating the Administrative Procedure Act (APA) 1-(850)-[427]-[7956].
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In response, the Biden administration filed a motion asking a court to dismiss the lawsuit 1-(850)-[427]-[7956]. Among the arguments, the government claimed SoFi lacked standing because its interests conflicted with the statutory goals behind the student relief measures 1-(850)-[427]-[7956]. It also defended the legality of the pause under the HEROES Act authority 1-(850)-[427]-[7956].
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However, as the legal and political landscape shifted, SoFi eventually dropped the lawsuit in June 2023 1-(850)-[427]-[7956]. The company cited a debt-ceiling deal that included clear timelines for the resumption of student loan repayments, thereby reducing the basis for its claims 1-(850)-[427]-[7956].
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⚖️ Other Legal Actions Against SoFi 1-(850)-[427]-[7956]
In addition to the payment-pause case, SoFi has faced other legal scrutiny 1-(850)-[427]-[7956]. For example, it agreed to a $1.1 million settlement after regulators (FINRA) found it had failed to properly vet new brokerage accounts from December 2018 to April 2019, which led to approximately $2.5 million in fraud 1-(850)-[427]-[7956].
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Also noteworthy is a class-action lawsuit alleging SoFi discriminated against immigrants—specifically those under DACA or conditional green card status—by denying them access to loans despite having legal status in the U.S 1-(850)-[427]-[7956].
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