Think Finance Bankruptcy and Consumer Relief

Think Finance, a leading online lender, had a significant impact on the financial lives of many consumers. It operated from 2011 to 2015, providing short-term loans to those in need.

The company's bankruptcy in 2015 led to a consumer relief plan, which allowed affected borrowers to have up to 50% of their outstanding principal balances forgiven.

Many consumers benefited from this plan, as it provided a much-needed safety net during a difficult time.

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Think Finance has a rich history that dates back to 2001 when it was founded in Fort Worth, Texas.

The company's foundation marked the beginning of a successful journey that spanned over a decade, with Martin J. Wong at the helm as CEO since May 2014.

Think Finance made a significant change in 2014 by spinning off its consumer lending products portfolio into a new company called Elevate.

This restructuring led to a shift in Think Finance's business model, where it now provides analytics and technology services to third-party online lenders.

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In 2014, Think Finance restructured its business, and as a result, its business model changed dramatically.

Think Finance's new focus allowed it to expand its services and reach a wider market.

By spinning off its consumer lending products, Think Finance was able to concentrate on its core strengths and expertise.

This move enabled Think Finance to become a leading provider of analytics and technology services to online lenders.

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Think Finance emerged from Chapter 11 bankruptcy proceedings in late 2019, dissolving the company's name and structure, while its subsidiaries continued to operate.

The bankruptcy was a significant turning point for the company, marking a major reorganization of its business.

In 2017, the CFPB filed a lawsuit against Think Finance, LLC, and six of its subsidiaries for engaging in unfair and deceptive practices.

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Think Finance emerged from Chapter 11 bankruptcy proceedings in late 2019 and reorganized its company structure. This marked a significant shift in the company's operations.

The Think Finance name and company were dissolved as a result of the bankruptcy proceedings. This change had a ripple effect on its subsidiaries, which continue to operate but are no longer under the Think Finance umbrella.

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Think Finance, LLC faced a lawsuit from the CFPB in November 2017.

The CFPB alleged that Think Finance engaged in unfair, deceptive, and abusive acts and practices that violated the Consumer Financial Protection Act.

This lawsuit targeted Think Finance and six of its subsidiaries, who offered lines of credit and installment loans over the internet to consumers nationwide.

The CFPB claimed that Think Finance collected loans that were completely or partially void under the law in 19 states, including Arizona, Arkansas, and New York.

These states have laws that protect consumers from predatory lending practices, and Think Finance allegedly disregarded them.

The lawsuit aimed to hold Think Finance accountable for its actions and ensure that consumers are protected from financial harm.

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In the Eastern District of Virginia, a $50,050,000.00 settlement was reached in 2020 against the predatory online tribal lending industry.

The settlement, known as Gibbs et al. v. TCV V, L.P. et al., also resulted in the cancellation of approximately $383,000,000.00 in debt.

In 2019, a bankruptcy court proceeding in Texas approved a $55,750,000.00 settlement, with $380,711,145.15 in debt cancellation, deletion of 920,772 loans, and $7,500 service awards to each of the 25 Nationwide Class Representatives.

Judge M. Hannah Lauck of the District Court for the Eastern District of Virginia granted final approval in the last of the Think Finance series of cases, which arose from a predatory rent-a-tribe lending scheme operated by Think Finance.

These settlements have provided close to $1 billion in monetary relief and debt cancellation to customers of Great Plains, Plain Green, and MobiLoans.

The total cash and debt forgiveness from these settlements is approximately $150 million in cash and over $750 million in debt forgiveness.

Consumers will automatically receive the benefits without having to submit a claim form under the settlement.

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Think Finance offered a suite of technology and services called Cortex, which helped lenders manage various aspects of online loans.

Cortex included features for marketing, originating, servicing, and managing online loans.

This comprehensive approach enabled lenders to streamline their operations and improve their overall efficiency.

Think Finance's product, Cortex, was designed to be a one-stop-shop for lenders' online loan needs.

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Think Finance was recognized for its innovative approach to business, ranking #2 on the Forbes List of America’s Most Promising Companies in 2013. This recognition was due to its success in applying new technology to stagnant business models, leading to impressive growth.

The company's growth was also acknowledged by Inc. Magazine, which listed Think Finance as an Honoree on the Inc. 5000 List of the Fastest Growing Companies from 2010-2015. Think Finance's 3-year growth rate of 216% was particularly notable, and it surpassed $687 million in revenue in 2013.

In addition to its business success, Think Finance's impact was also significant, providing almost $1 billion in relief to consumers through its products and services.

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Almost $1 billion in relief was awarded to victims of financial scams, a significant milestone in the fight against financial exploitation.

The Eastern District of Virginia played host to two notable cases that led to this substantial relief. Darlene Gibbs, et al., v. Mike Stinson, et al. (No.: 3:18-cv-676) and Darlene Gibbs, et al. v. Elevate Credit, Inc. (No.: 3:20-cv-632) were two cases that resulted in significant payouts to affected parties.

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The Consumer Financial Protection Bureau (CFPB) has been a driving force behind this relief, allocating funds to help consumers who have been scammed.

Since its creation in 2010, the CFPB has distributed about $19 billion to over 195 million defrauded consumers.

This effort to provide relief to those who have been victimized by financial scams is a crucial step in protecting consumers and holding companies accountable for their actions.

Payments to consumers harmed by Think Finance's practices will be sent out, providing much-needed relief to those who have been affected.

Those who think they are eligible can find more details at the CFPB's website, or contact the settlement administrator, Epiq Systems, for assistance.

Think Finance was ranked #2 on the Forbes List of America’s Most Promising Companies in 2013. This recognition was due to their innovative approach to applying new technology to stagnant business models.

The company's growth outperformed traditional banks, with a 216% three-year growth rate. This impressive growth rate earned Think Finance a spot as an Honoree on the Inc. 5000 List of the Fastest Growing Companies from 2010-2015.

In 2013, Think Finance surpassed $687 million in revenue. This significant milestone solidified their position as a leading player in the financial industry.

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