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CFPB Distributes $384 Million to 191,000 Victims of Think Finance’s Illegal Lending Practices
WASHINGTON DC – The Consumer Financial Protection Bureau (CFPB) today distributed more than $384 million to approximately 191,000 consumers harmed by Think Finance. Think Finance, a Texas-based online lender, tricked borrowers into repaying loans they didn’t owe. The CFPB distributed the money through its victims aid fund.
The CFPB’s Victim Relief Fund, also known as the Civil Penalty Fund, has distributed more than a billion dollars to consumers harmed by scams, fraud, and other illegal practices. The CFPB’s Victim Relief Fund is a unique tool that helps the agency heal harmed consumers when wrongdoers are unable to fully compensate their victims. Penalties paid and disbursed by the victim relief fund are separate from the monetary redress that the CFPB orders violators to pay directly to harmed consumers.
“Victims of financial crimes are often left without recourse, even when the companies that harm them are detained by authorities,” said CFPB Director Rohit Chopra. “The Victim Relief Fund allows the CFPB to help consumers even when bad actors have squandered their ill-gotten profits.”
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In November 2017, the CFPB filed lawsuit against Think Finance, alleging the company tricked consumers into repaying loans they didn’t owe. Think Finance illegally charged off loans that were written off under state laws governing interest rate caps and lender licensing requirements. The company misrepresented to consumers that they owed money on these loans, made electronic withdrawals from consumers’ bank accounts, and sent letters demanding payment.
The distribution of $384 million from the CFPB’s Victim Relief Fund to consumers harmed by Think Finance is a result of the CFPB’s indictment. This distribution will provide financial redress to thousands of consumers who were lied to by Think Finance and who lost money due to the company’s illegal practices.
CFPB Victim Relief Fund
Congress created the CFPB Victim Relief Fund in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Since opening its doors, the CFPB has distributed funds to harmed consumers in cases involving a wide range of illegal practices, such as student loan and mortgage relief fraud, predatory lending, and illegal debt collection.
Most law enforcement tools are designed to find and punish lawbreakers. However, the victim relief fund authorizes the CFPB to compensate harmed consumers. When the CFPB takes legal action against a violating person or company, the violator often must pay restitution to harmed consumers in addition to a civil monetary penalty to be deposited into the CFPB’s victim relief fund. The fine is stored in the fund, and the money allows the CFPB to provide financial relief in cases where the consumer does not receive compensation directly from the company that harmed them.
It is important to note that the CFPB is frequently accompanied in its enforcement actions by state attorneys general. In appropriate cases, the Victim Relief Fund can ensure that victims in these states will receive financial assistance, even if offenders are unable to pay full compensation.
CFPB Law Enforcement Mission
Through its law enforcement actions, the CFPB holds violators accountable for their illegal practices and seeks relief for harmed consumers. The CFPB enforces a wide range of federal consumer financial laws, including the Consumer Financial Protection Act, the Truth in Lending Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, and the Fair Practices Act. of Debt Collection.
The CFPB’s enforcement actions have resulted in significant financial relief for consumers. To date, more than 195 million consumers and consumer accounts have received approximately US$19 billion in the form of monetary compensation, principal reductions, canceled debts, and other ordered consumer relief measures. In 2023 alone, the CFPB ordered violators to pay more than $3 billion in consumer relief.
The CFPB’s enforcement work serves as a deterrent to illegal practices in the financial markets, sending a clear message that violations of consumer protection laws will have consequences. By holding companies accountable and obtaining relief for harmed consumers, the CFPB helps maintain trust and fairness in the financial system.
If you were one of the more than 191,000 eligible consumers harmed by Think Finance’s practices, you will receive a payment starting May 14, 2024. Distribution details are available at cfpb.gov/payments/ThinkFinance. The CFPB hired Epiq Systems as a settlement administrator to answer questions about payment distributions and the case. They can be emailed to info@cfpb-thinkfinance.org or contacted via a dedicated toll-free line at (888) 557-1865.
The total distribution amount is $384,009,581 and the money will come from the CFPB victims aid fund.
Consumers can file complaints about financial products or services by visiting the CFPB website or calling (855) 411-CFPB (2372).
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces federal consumer financial laws and ensures that markets for consumer financial products are fair, transparent and competitive. For more information visit www.consumerfinance.gov.