SoFi Blog

New Offering Adds Transparency to One of the Fastest Growing Categories of Consumer Debt¹

SAN FRANCISCO‐April 6, 2021‐SoFi announced today that transparent, competitive, and personalized auto loan refinancing offers are now available through Lantern, the financial services product comparison site owned and operated by SoFi, the digital personal finance company. SoFi launches auto loan refinancing in partnership with MotoRefi – an auto fintech startup on a mission to help people save money on their auto loans – to combine selection, speed, and convenience through its network of trusted lenders. This agile approach ensures borrowers have the opportunity to choose from a selection of competitive offers that fit their financial situation and goals, quickly. 

Auto loan debt has quickly become one of the most important areas for consumers to be mindful of when it comes to maximizing financial well-being and now ranks as the third largest component of household debt1. This need is underscored by the record-setting volume of auto loans borrowers took out last year. In 2020, the average auto loan amount soared to more than $35,000, on average, according to Experian. This means Americans are now approaching an average payment of $600/month for new cars and more than $400/month for used vehicle purchases.²

“For most people, having our own form of transportation is a critical staple when it comes to meeting many obligations – across both our personal and professional lives – and we don’t think access to it should come at the cost of anyone’s financial well-being,” said Anthony Noto, CEO of SoFi. “We know lowering monthly payments on a loan that was used to finance an expensive, yet often depreciating, asset is a smart decision that can make a very real, positive impact, not only on a monthly basis but also in the long-term. Our decision to expand into auto loan refinancing is rooted in a belief that everyone deserves visibility into the steps they can take to improve their financial stature throughout each milestone in their financial lives.” 

SoFi’s expansion into auto loan refinancing in partnership with MotoRefi not only makes for a seamless user experience, it also adds a much-needed layer of transparency to the process by allowing the borrower to view competitive offers and determine eligibility without any impact to their credit score. The integration is powered by MotoRefi’s ecosystem API, which empowers borrowers by connecting them with pre-qualified refinance offers that the company says saves borrowers an average of $100/month.

“MotoRefi and SoFi share a similar goal of helping average consumers improve their financial lives,” said MotoRefi CEO, Kevin Bennett. “At a time when a lot of Americans are making every dollar count, we can think of no better partners in launching our API than a fintech powerhouse like SoFi.” 

Starting today, borrowers who are interested in quickly obtaining transparent, competitive, and personalized auto loan refinancing offers can begin the process on the SoFi.com homepage or directly through Lantern, the product comparison site owned and operated by SoFi. In the coming weeks, SoFi will continue to embrace Financial Literacy Month by helping people Get Their Money Right across all categories through educational content, new solutions, and through the continued expansion of its partner network, which includes leading lenders, insurance providers, and more.

About SoFi

SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing and protecting give our over 1.8 million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. SoFi is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.

About Lantern

Lantern by SoFi is a product comparison site that makes it easy for individuals to shop for products and compare offers with top lenders. Lantern is owned and operated by SoFi Lending Corp. or an affiliate, the digital personal finance company that has helped over one million people get their money right. 

About MotoRefi

MotoRefi believes refinancing your auto loan should be a simple, transparent process. Through our partnerships with trusted lenders, like credit unions and community banks, we bring customers great rates and lower monthly payments, ultimately saving customers an average of $100 per month on their car payments. MotoRefi, incubated by QED Investors, is backed by Moderne Ventures, Accomplice, Link Ventures, Motley Fool, CMFG Ventures (part of CUNA Mutual Group), Gaingels, FireBolt Ventures, and others.

Media Contact

[email protected]

###

Disclosures

Caution Regarding Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the anticipated benefits of the transaction, the anticipated timing of the transaction, future financial condition and performance of SoFi and the expected financial impact of the transaction and the satisfaction of closing conditions to the transaction. These forward-looking statements generally are identified by the words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: ability to obtain regulatory approvals and meet other closing conditions to the merger on the expected terms and schedule; delay in closing the merger; difficulties and delays in integrating GPB or fully realizing cost savings and other benefits; business disruption following the proposed transaction; ability to execute our business strategy; business and economic conditions; economic, market, operational, liquidity, credit and interest rate risks associated with SoFi’s business; effects of any changes in trade, monetary and fiscal policies and laws; changes imposed by regulatory agencies to increase capital standards; effects of inflation and interest rate, securities market and monetary supply fluctuations; changes in consumer spending, borrowings and savings habits; SoFi’s dependence on information technology and telecommunications systems of third party service providers and the risk of systems failures, interruptions or breaches of security; changes in sources and uses of funds; increased competition in the financial services industry; costs and effects of changes in laws and regulations and of other legal and regulatory developments; technological changes; the timely development and acceptance of new products and services; SoFi’s continued ability to attract and maintain qualified personnel; widespread natural and other disasters, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities; impact of reputational risk; effect of uncertainties related to the global COVID-19 pandemic on SoFi’s business, results of operations, and financial condition; and success at managing the risks involved in the foregoing items. The foregoing list of factors is not exhaustive. SoFi can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and SoFi does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Additional Information and Where to Find It

SoFi is currently a party to that certain Agreement and Plan of Merger (the “Merger Agreement”), by and among SoFi, Social Capital Hedosophia Holdings Corp. V, a Cayman Islands exempted company (“Social Capital Hedosophia”), and Plutus Merger Sub Inc., pursuant to which SoFi will be acquired by Social Capital Hedosophia (together with the other agreements and transactions contemplated by the Merger Agreement, the “Business Combination”).  This press release does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the Business Combination, Social Capital Hedosophia filed a registration statement on Form S-4 with the Securities and Exchange Commission (“SEC”) on January 11, 2021, as amended by Amendment No. 1 to the registration statement on Form S-4 filed with the SEC on February 10, 2021. The proxy statement/prospectus will be sent to all Social Capital Hedosophia shareholders. Social Capital Hedosophia also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of Social Capital Hedosophia are urged to read the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction.

Investors and security holders may obtain free copies of the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by Social Capital Hedosophia through the website maintained by the SEC at www.sec.gov.

The documents filed by Social Capital Hedosophia with the SEC also may be obtained free of charge at Social Capital Hedosophia’s website at: https://www.socialcapitalhedosophiaholdings.com/docse.html or upon written request to 317 University Ave, Suite 200, Palo Alto, California 94301.

Participants in Solicitation

Social Capital Hedosophia and SoFi and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Social Capital Hedosophia’s shareholders in connection with the Business Combination. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading the proxy statement/prospectus regarding the Business Combination. You may obtain a free copy of these documents as described in the preceding paragraph.

1 Federal Reserve Bank of New York, Household Debt and Credit Report (Q4 2020), February 2021

2 Experian, Automotive Industry Insights: Finance Market Report (Q4 2020),  March 2021

Alcohol ecommerce startups are getting a lot of interest from investors. Learn how they are inking deals, tapping the public markets, and bringing in cash.

Automatic Payment Authorization Form

You have the option to pay your loan each month using our Auto Payment option which will electronically debit payments from your bank account. If you decide to use Auto Payments you must agree to the terms of this agreement.
This agreement can only be used for Auto Payments from a bank deposit account of the borrower. If you chose the Auto Payment option, you will be entitled to have the interest rate on your loan reduced by .25% APR reduction for all payments made using the Auto Payment feature.

By clicking “I Agree”, you authorize SoFi Lending Corp. or an affiliate to initiate monthly deductions from your checking or savings account indicated on the previous screen in the amount equal to the sum of your monthly scheduled loan payment, plus, if applicable,
any additional amounts set forth, and any late fees or other amounts owed under the terms of your loan agreement

You understand and acknowledge that:

• • SoFi will begin to deduct monthly payments from your account on the first payment due date after this authorization form has been processed by SoFi.
• • This agreement is not assignable by you, however SoFi may, at any time, transfer this agreement and your authorization to a successor servicer or any other entity which may purchase your loan.
• • This authorization will remain in effect until terminated by SoFi or by you in your account by calling 855-456-7634.
• • In the event, you terminate this agreement, you understand that SoFi and your financial institution may require up to 10 business days to process any termination or other adjustment you make to your Auto Payment instructions.

Disclosure Statement for Recurring Auto Payments

1. The Type and Nature of Automatic Payment
   Each Auto Payment will be effective on the due date of your loan payment. The payment amount will be equal to (a) your monthly loan payment (based on the applicable repayment schedule), plus (b) any additional
   amounts you’ve authorized to be deducted and applied to your account, plus (c) any late fees or other amounts owed on your account pursuant to your loan agreement to the extent permissible under applicable law.

2. In Case of Errors and Questions About Your Automatic Payments
   You understand that you have certain rights under the Electronic Funds Transfer Act and its implementing regulation (Regulation E) with respect to unauthorized Auto Payments and the resolution of errors related to Auto Payments.
   If you suspect an error in any Auto Payment transaction, you must contact your financial institution to preserve those rights. This will not negate your responsibility to make scheduled payments on your loan during the investigation by your financial institution.

3. Right to Terminate Auto Payments, Insufficient Funds.
   SoFi or you may terminate this Agreement with or without cause. It may take SoFi or your financial institution up to 10 business days to process any request to terminate this agreement. Please note that SoFi reserves the right to suspend and/or terminate this
   Agreement if it receives an insufficient funds return on an attempted payment. SoFi is also authorized under this Agreement to collect by Auto Payment any additional fees due under your loan agreement, as well as fees charges by SoFi resulting from insufficient funds,
   to the extent permitted by law. You may also be charged a return fee by your financial institution if sufficient funds are not available at the time of an Auto Payment. In addition to fees and possible termination of the Auto Payment feature, your loan will not receive the benefit
   of the .25% APR reduction on your interest rate for any Auto Payment which was not honored by your financial institution or any payment made by check, wire or other means other than by Auto Payment. You may terminate Auto Payments by providing timely notice to SoFi either in writing via chat by clicking HERE, or verbally by calling 855-456-7634. If Chat is closed, you will be prompted to open a chat follow up ticket and someone from SoFi will get back to you. Please note that SoFi must receive your verbal or written request at least 10 business days before the date on which you wish to have your Auto Payments terminated. You are responsible for making timely monthly payments on your loan(s)
   after you have terminated Auto Payments. Termination of this Agreement will result in the loss of any interest rate discount offered while participating in the Auto Payment program and the amount of your monthly payments will increase. After any termination of this Agreement, you may reapply for Auto Pay the next month.

4. Assignment, Changes.
   This Agreement is not assignable by you, however SoFi may, at any time, transfer this Agreement and your authorization to a successor servicer or other entity which may purchase your loan. In addition, SoFi may assign or sell its rights and obligations under this Agreement to a
   third party at any time, by executing this agreement, you will be deemed to have consented to any such sale or assignment by SoFi of its rights and obligations hereunder to any third party.

   If SoFi initiates a change to your monthly loan payment amount, the new payment amount and any additional amount you previously requested to be deducted via Auto Payment, will continue to be deducted from your account. You have the right to receive notice at least 10 days
   in advance of any change to your Auto Payment amount. If you wish to change the monthly additional amount withdrawn or make other changes to your Auto Payment directions, you will be required to submit a new Auto Payment Authorization Agreement to SoFi which will take up to 10 business days to process.

5. Resuming Automatic Payments After Deferment, Forbearance or Grace Period
   If you are granted a forbearance or deferment on your loan after this Agreement is effective, the forbearance or deferment will not automatically terminate this Agreement, and Auto Payments under this Agreement will resume with the first payment due following the deferment,
   forbearance or grace period, unless you suspend Auto Payments or terminate this Agreement as described above. Any interest rate reduction from Auto Payments will not apply to interest accrued during any forbearance, deferment, or grace periods in which you do not make Auto Payments.
   Automatic Payments will resume at the end of your deferment, forbearance or grace period.

6. Confidentiality/Privacy
   SoFi may disclose information to third parties regarding your bank account, your loan account and/or Auto Payments to the extent permitted by law, including but not limited to, the following circumstances:

   1. • When necessary to complete an Automatic Payment;

   2. • To verify the existence and condition of your account for a credit bureau or merchant;

   3. • To verify the existence and condition of your account for a credit bureau or merchant;

   4. • To comply with government agency requests, subpoenas, or orders, lawful discovery under federal or state rules of civil and criminal procedure, court orders, or as otherwise required by applicable law; or

   5. • If you give SoFi written permission to do so.

7. Other Agreements and Regulations
   SoFi reserves the right, upon notice to you, to make changes to the Auto Payment feature as required to comply with changes to any state or federal laws rules or regulations applicable to debits to accounts.

8. Business Days
   For purposes of this Agreement, business days are Monday through Friday, excluding bank holidays.

9. Auto Pay Statements
   You will continue to receive a monthly account statement, via email, from SoFi which reflects your Auto Payments.

10. Interest Rate Reduction
    Your loan will be entitled to a .25% APR reduction on your loan interest rate for all payments made through Auto Payments. If this Agreement is terminated, or Auto Pay is terminated, suspended, returned for insufficient funds,
    or if you default on loans enrolled in Auto Pay, you will lose the interest rate reduction for all payments not made using Auto Payment. As noted above, you will also lose the interest rate reduction during any deferment,
    forbearance or grace periods.

11. Definitions

    1. • Loan means each loan issued by SoFi to Borrower under this Account Number.

    2. • Bank Account means the deposit account of Borrower identified on the previous screen.

    3. • Borrower means the Account Holder identified on the previous screen, who is also referred to in this Agreement as “you” and with terms “your” and “yours.”

    4. • SoFi shall include any purchaser of your loan, any successor servicer any agent retained by SoFi to conduct Auto Payments under this Agreement.