On November 15, 2017, the CFPB filed a Complaint in the United States District Court for the District of Montana against Think Finance, alleging the company deceived consumers about loan payments that were not legally owed. Many states have laws that nullify loans and other types of credit if interest rates exceed state limits, and lenders may not collect on these loans that are void. According to the CFPB, Think Finance pursued customers for payments, even though the loans at issue were void under state law, representing to consumers that they owed money on loans that they did not owe.

Additionally, the CFPB also alleged that Think Finance collected on these loans that were void. According to the Complaint, Think Finance is alleged to have made electronic withdrawals or sent letters to consumers demanding payment on loans that the consumer was under no legal obligation to pay under state laws governing interest rate caps or the licensing of lenders. 

To read the Complaint in full, visit https://s3.amazonaws.com/files.consumerfinance.gov/f/ documents/cfpb_think-finance_complaint_112017. pdf.