US Fed fines Green Dot $44 million for numerous unfair and deceptive practices (updated)
19/07/2024 20:11
(Adds Green Dot response, paragraphs 4-5)
By Pete Schroeder
WASHINGTON, July 19 (Reuters) - The U.S. Federal Reserve
announced on Friday it had fined Utah-based Green Dot GDOT.N
$44 million for numerous "unfair and deceptive" practices, as
well as deficient risk management.
The central bank said in a statement the firm, which issues
prepaid debit cards, violated consumer law in marketing those
products, as well as its tax return preparation payment
services.
The Fed said the company also improperly blocked accounts of
legitimate customers receiving unemployment benefits, and lacked
policies to address the errors.
In a statement, Green Dot CEO George Gresham said the issues
related to practices from "years ago," and that the firm was
committed to addressing its shortcomings and working with
regulators.
"We have taken and will continue taking meaningful steps to
correct and remediate those issues," he said.
(Reporting by Pete Schroeder in Washington
Editing by Chris Reese and Matthew Lewis)
((Pete.Schroeder@thomsonreuters.com; 202-310-5485;))