The Consumer Financial Protection Bureau (CFPB) yesterday filed suit against Think Finance for its role in deceiving consumers into repaying loans that were not legally owed, according to a CFPB press release. In a suit filed in federal court, the CFPB alleges that Think Finance illegally collects on loans that are void under state laws governing interest rate caps or the licensing of lenders. The Bureau alleges that Think Finance made deceptive demands and illegally took money from consumers’ bank accounts for debts that were not legally owed. The CFPB seeks to recoup relief for harmed consumers and impose a penalty. Think Finance, based in Addison, Texas, is an online provider of software technology, analytics, loan servicing, and marketing services. Think Finance, working with other companies, offered and serviced lines of credit and installment loans over the internet to consumers throughout the U.S. In its complaint, the Bureau alleges that Think Finance violated the Dodd-Frank Wall Street Reform and Consumer Protection Act by deceiving consumers and collecting on loans that were either partially or completely void under the laws of 17 states, including Arizona, Arkansas, Colorado, Connecticut, Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, and South Dakota.
