HARRISBURG — Attorney General Josh Shapiro today announced a settlement with Think Finance, a national payday that is online, and an associated personal equity company for allegedly engineering a $133 million unlawful pay day loan scheme that targeted up to 80,000 Pennsylvania customers.
The settlement will void all staying balances on the illegal loans, Shapiro’s statement said. Pennsylvania is among the leading creditors that negotiated this comprehensive settlement with Think Finance as an element of its bankruptcy plan, that will be pending approval ahead of the Bankruptcy Court and subsequent approval because of the U.S. Eastern District Court of Pennsylvania.
In belated 2014, the Pennsylvania workplace of Attorney General sued Think Finance, Inc. And Chicago-based personal equity firm Victory Park Capital Advisors, LLC, as well as other affiliated entities. The suit alleged that between 2011-2014, three sites operated by Think Finance — Plain Green Loans, Great Plains Lending and Mobiloans —allowed borrowers to join up for loans and personal lines of credit while billing effective rates of interest as high as 448 %.
Pay day loans, which typically charge interest levels more than 200 or 300 %, are unlawful in Pennsylvania.
The suit also alleged that the internet sites attempted to shield on their own from state and federal guidelines by running beneath the guise of Native American tribes while the very very First Bank of Delaware, a bank that is federally chartered with that loan item called “ThinkCash. ”
Shapiro alleged why these actions had been in breach of a few Pennsylvania guidelines, such as the Pennsylvania Unfair Trade methods and customer Protection Law, the Pennsylvania Corrupt businesses Act, the Pennsylvania Fair Credit Extension Uniformity Act, plus the Consumer that is federal Financial Act of 2010. Victory Park Capital ended up being sued underneath the Corrupt businesses Act just. Read more…