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Think Finance & Forbes: A Look at a Shuttered Fintech

Think Finance, a fintech company once prominently featured in Forbes and other business publications, ultimately met a controversial end. Founded in 2001, the company operated in the online lending space, offering various financial products primarily targeted towards underbanked consumers. Forbes, like many business outlets, initially highlighted Think Finance’s innovative approach to lending, its technological advancements, and its potential to disrupt the traditional payday loan industry.

Initially, the narrative surrounding Think Finance centered on its use of data analytics and technology to assess risk and provide access to credit for individuals often excluded from mainstream financial services. Forbes articles often portrayed the company as a pioneer, exploring how it could offer responsible and more affordable alternatives to traditional payday loans. Features may have focused on the company’s growth, its partnerships, and its perceived commitment to financial inclusion.

However, the positive coverage eventually faded as regulatory scrutiny intensified. Think Finance and its related entities faced numerous lawsuits and investigations alleging predatory lending practices, including excessively high interest rates disguised through complex loan structures. These accusations directly contradicted the earlier portrayals of the company as a responsible innovator. The central issue revolved around whether Think Finance was, in essence, circumventing state usury laws through partnerships with tribal entities, a practice known as “rent-a-tribe” lending.

The legal battles and the reputational damage ultimately led to Think Finance filing for bankruptcy in 2017. A significant turning point came when the company was forced to relinquish control of its assets and settle with regulators and plaintiffs. The settlement involved a substantial payout to affected borrowers and a permanent injunction against engaging in similar lending practices in the future.

The Think Finance story serves as a cautionary tale. It highlights the importance of thorough due diligence and critical evaluation when covering disruptive companies, especially in the highly regulated financial sector. While Forbes and other publications initially reported on the company’s potential and technological advancements, the subsequent revelations of alleged predatory lending practices underscore the need for journalism to scrutinize business models and practices rigorously, particularly when vulnerable populations are involved. The case demonstrated that seemingly innovative fintech solutions can, in reality, perpetuate or even exacerbate existing financial inequalities.