CFPB sends $384M to victims of Think Finance's illegal lending practices

The CFPB yesterday announced it has distributed more than $384 million to about 191,000 consumers harmed by Think Finance, a Texas-based online lender that deceived borrowers into repaying loans they did not owe.

The funds came from the CFPB's victims relief fund, which has now distributed more than $1 billion to consumers harmed by scams, fraud, and other illegal practices. The fund is a unique tool that helps the CFPB make harmed consumer whole when lawbreakers are unable to fully compensate their victims.

In November 2017, the CFPB filed suit against Think Finance, alleging that the company deceived consumers into repaying loans they did not owe. Think Finance illegally collected on loans that were void 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.