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Published on May 15, 2024
Illinois Residents to Receive $1,100 Apiece in Settlement from Think Finance ScamSource: Unsplash/Alexander Mils

A multi-million-dollar payout is en route to thousands of Illinois residents as part of a settlement over a finance scam, with the Consumer Financial Protection Bureau (CFPB) dispersing checks averaging about $1,100 to victims duped into repaying non-existent loans, the agency revealed.

In a major financial rectification, the CFPB confirmed on Tuesday that plans had been put in action to issue over $384 million across 17 states, impacting roughly 191,000 consumers who fell prey to the scam by Texas-based Think Finance, a firm that had been arm-twisting borrowers into settling loans voided under state laws, as per statements reported by Chicago Sun-Times.

The company, which also engaged in unauthorized debt collection in states including Illinois, made the fatal error of withdrawing funds directly from customers' accounts and aggressively demanding payments through calls and letters for debts that legally did not stand, according to the lawsuit filed by the CFPB in 2017.

"Too often, victims of financial crimes are left without recourse even when the companies that harm them are stopped by law enforcement," CFPB Director Rohit Chopra pointed out, emphasizing the significance of the victims relief fund that replenishes the pockets of those swindled, even when the fraudulent firms have squandered their illegal gains, as per CBS News.

Think Finance's ill-famed practices caught up with them when they declared bankruptcy in 2017, shortly before the lawsuit's initiation, they've since dissolved and resurfaced as TF Holdings, now bound by a court order that bars them from providing credit in the affected states. For Illinoisans with queries on the settlements, CFPB encourages reaching out either via the designated email [email protected] or the phone number (888) 557-1865, and for consumers outside of the settlement, CFPB's general complaint window remains open on their website or at (855) 411-2372.