Think Finance: An Overview

Think Finance, Inc. was a privately held, Texas-based online lender that offered a range of financial products and services primarily targeted toward consumers with limited access to traditional banking options. Operating under various brand names, including Elevate, Rise Credit, Sunny Loans, and Elastic, the company specialized in short-term, high-interest loans, lines of credit, and installment loans.

Founded in 2001, Think Finance positioned itself as an innovator in the fintech space, leveraging technology and data analytics to assess creditworthiness and provide alternative lending solutions. Its core business model revolved around offering financial assistance to individuals who were often overlooked by mainstream lenders due to factors like thin credit files, past credit challenges, or unstable employment histories.

The company’s offerings were often marketed as convenient and accessible solutions for immediate financial needs, such as unexpected bills or emergency expenses. The online application process was streamlined, and approvals could often be granted quickly, making Think Finance’s products attractive to borrowers facing urgent financial situations. However, the high interest rates and fees associated with these loans became a significant point of controversy and regulatory scrutiny.

Think Finance faced numerous legal challenges and investigations related to its lending practices. Regulators and consumer advocacy groups raised concerns about the company’s lending rates, which often exceeded state usury laws. Lawsuits alleged that the company engaged in predatory lending practices, targeting vulnerable consumers with unsustainable debt burdens. These legal battles centered on questions of whether Think Finance was the true lender or simply a service provider acting on behalf of tribal lending entities, which often claimed sovereign immunity from state regulations.

The legal pressure and regulatory scrutiny eventually led Think Finance to file for Chapter 11 bankruptcy protection in 2017. The bankruptcy proceedings involved extensive litigation with state regulators and class-action lawsuits filed by borrowers who claimed they were harmed by the company’s lending practices. As part of the bankruptcy process, Think Finance reached settlements with various states and agreed to provide restitution to affected borrowers.

The Think Finance saga highlights the complexities and controversies surrounding the alternative lending industry. While proponents argue that these lenders provide valuable financial services to underserved populations, critics contend that their high-interest rates and fees can trap borrowers in cycles of debt. The case also underscores the importance of consumer protection regulations and the ongoing debate over how to balance access to credit with the need to prevent predatory lending practices.

Following its bankruptcy, Think Finance’s assets were sold off, and its various lending brands were acquired by other companies. The company’s legacy serves as a cautionary tale about the potential pitfalls of high-interest lending and the need for responsible lending practices within the fintech industry.