Think Finance, a national online payday lender and Victory Park Advisors, a private equity firm based in Chicago, reached a settlement agreement with the Pennsylvania Attorney General’s office.
Attorney General Josh Shapiro sued Think Finance and Victory Park Advisors for allegedly engineering a $133 million illegal online payday loan scheme.
Under the settlement, the payday lender will void all remaining balances on the illegal loans as part of its bankruptcy plan. Think Finance’s bankruptcy plan and settlement agreement with the Attorney General’s office is subject to the approval of the Bankruptcy Court and the U.S. Eastern District Court of Pennsylvania.
In addition, the settlement creates a multi-million dollar fund for consumers who were victims of the illegal online payday loan scheme. Consumers who repaid more than the loan principal and the lawful interest rate of 6 percent will receive a check for their refunds in the mail.
Furthermore, the settlement requires the defendants to request credit bureaus to delete any credit reporting on the loans.
