CFPB Distributes $384 Million to Think Finance Victims

The Consumer Financial Protection Bureau (CFPB) has distributed over $384 million to around 191,000 victims of Think Finance, a Texas-based online lender accused of illegal lending practices. This marks a significant milestone, bringing total payments from the CFPB’s victims relief fund to more than $1 billion.

Background on Think Finance

In 2017, the CFPB sued Think Finance for deceiving borrowers into repaying loans they did not owe. The company collected on loans void under state laws regarding interest rate caps and licensing requirements, made unauthorized withdrawals from bank accounts, and misled consumers about their debts.

The CFPB’s Victims Relief Fund

The CFPB’s victims relief fund, established by the Dodd-Frank Act, compensates consumers harmed by financial misconduct. This fund is replenished by civil penalties paid by lawbreakers and is used when direct compensation from the offending company is insufficient.

Consumers need to be aware that there are other unscrupulous debt collectors that use questionable tactics to collect money from unsuspecting consumers.

How to Handle Questionable Debt:

1. Verify the Debt: Request validation from the collector. They must provide proof that the debt is yours and is within the statute of limitations.
2. Know Your Rights: Familiarize yourself with the Fair Debt Collection Practices Act (FDCPA), which protects against abusive debt collection practices.
3. Do not Acknowledge or Pay: Avoid making payments or acknowledging the debt before verifying its validity and ensuring it’s not time-barred.
4. Dispute Errors: If the debt is not yours or is past the statute of limitations, dispute it in writing with the debt collector and credit reporting agencies.
5. Seek Legal Advice: Consult with a consumer rights attorney if you feel overwhelmed or if a collector threatens legal action.

Debt collection issues can be a confusing and stressful issue for consumers. Understanding how to handle it effectively can help protect your financial health and peace of mind.

Contact Diwan Law if you have questions about debt collection. Our law firm is experienced in debt collection law and has an established record of protecting consumers’ rights and explaining your options. Give us a call at 404.635.6883.

* The information presented in this article does not constitute legal advice. All information, content, and materials presented on this website are for general informational purposes only. We encourage you to contact Diwan Law before taking any action.