WASHINGTON— The Consumer Financial Protection Bureau (CFPB) said 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 CFPB distributed the money through its victims relief fund.
In November 2017, the CFPB filed a lawsuit against Think Finance, alleging the company 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,” according to the CFPB.
“The CFPB’s victims relief fund’s $384 million distribution to consumers harmed by Think Finance is a result of the CFPB’s prosecution. This distribution will provide financial redress to thousands of consumers who Think Finance lied to, and who lost money due to the company’s illegal practices.”
The CFPB’s Victims Relief Fund
Congress created the CFPB’s victims relief fund in the Dodd-Frank Wall Street Reform and Consumer Protection Act. Since opening its doors, the CFPB reported it has distributed funds to consumers harmed in cases involving a wide range of illegal practices, like student loan and mortgage relief scams, predatory lending, and illegal debt collection.
“Most law enforcement tools are designed to find and punish lawbreakers. However, the victims relief fund authorizes the CFPB to compensate harmed consumers,” the Bureau stated. “When the CFPB takes legal action against a lawbreaking person or company, the lawbreaker often must pay redress to harmed consumers, in addition to a civil money penalty to be deposited in the CFPB’s victims relief fund. The penalty is saved in the fund, and the money enables the CFPB to provide financial relief in cases where consumers do not receive compensation directly from the company that harmed them.”
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