CFPB Hands Out $1 Penalties in Proposed Settlement

  • Written by Kyle Brasseur of Compliance Week

Former payday lender Think Finance would split the $7 penalty across its seven entities involved in the lawsuit initially filed by the CFPB on behalf of consumers in 17 states in November 2017. The CFPB alleged the entities violated the Consumer Financial Protection Act with regard to illegal collections on voided loans through deceptive, unfair, and abusive practices.

The $7 in penalties is more symbolic than anything—the focus of the Think Finance case is a nearly $40 million restitution fund agreed to in July 2019 being set up to repay harmed consumers. The class action settlement also required the cancellation of outstanding loans serviced by Think Finance under several tribal lenders mentioned at length in the CFPB’s lawsuit.

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