in Newswire Published on November 7, 2017

Lawsuit: Think Finance Charged 400 Percent Interest on Loans in ‘Rent-a-Tribe’ Scheme [UPDATE]

Last Updated on June 18, 2024

Banks v. Kenneth Rees et al.

Filed: September 22, 2017 ◆§ 8:17-cv-02201-SDM-AAS

Think Finance, Inc., six affiliate entities, and the company’s chief executive officer are facing a lawsuit that claims they exploited a Native American tribe's sovereign immunity to offer consumers loans with unlawfully high interest rates.

Defendant(s)

Think Finance, Inc. Think Finance SPV, LLC TC Decision Sciences, LLC TC Loan Service, LLC Tailwind Marketing, LLC TC Administrative Services, LLC GPL Servicing, Ltd.

Law(s)

RICO

State(s)

Florida

June 6, 2024 – CFPB Distributes $384M to Victims of Alleged Think Finance Lending Scheme

The Consumer Financial Protection Bureau (CFPB) announced on May 14, 2024, that it distributed more than $384 million to hundreds of thousands of consumers who were allegedly deceived by Think Finance into repaying loans they did not legally owe.

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The massive payout stems from a lawsuit the CFPB filed in November 2017 in which the watchdog alleged Think Finance and six of its subsidiaries illegally collected loans that were completely or partially void under the laws of 17 states.

Specifically, the CFPB claimed that Think Finance demanded payments consumers did not owe because the lenders charged interest rates in excess of the limits set by certain state laws, were not properly licensed to conduct business in certain states, or both.

“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 CFPB said in a press release.

According to the CFPB’s blog, the total distribution amount is $384,009,580.74, which is to be allocated among 191,672 consumers. The money will come from the CFPB’s victims relief fund.

Head to this page for more information on the CFPB’s Think Finance compensation program. If you have questions about receiving a refund, the federal agency asks that you email info@cfpb-thinkfinance.org or call 1-888-557-1865.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.

Think Finance, Inc., six affiliate entities, and the company’s chief executive officer are facing a proposed class action lawsuit that claims they partnered with a Native American tribe to offer consumers loans with unlawfully high interest rates while shielding themselves from liability by exploiting the Tribe’s Sovereign Immunity. In this “rent-a-tribe” scheme, the defendants, the suit claims, maintain complete control over business operations while paying the Otoe-Missouria Tribe “a tiny fraction” of their revenue – a flat fee of 4.5 percent – in order to use its name and evade state and federal lending laws. This business model, according to the complaint, allows the defendants to sidestep Florida’s interest cap of 18 percent per year (for loans of less than $500,000) and charge consumers as much as 400 percent on small “payday” loans.

The plaintiff says she applied for loans with the defendants on two occasions – for the amounts of $1,000 and $700 – and ended up paying a total of $3,439.45 and $1,302.73, respectively.

Notably, the case mentions that the Pennsylvania Attorney General filed suit against the defendants over similar allegations in January 2016.

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