WASHINGTON, July 19 (Reuters) – On Friday, the U.S. Federal Reserve announced a $44 million fine against Green Dot Corporation (GDOT.N), based in Utah, for a series of “unfair and deceptive” practices, as well as inadequate risk management procedures.
The central bank’s statement highlighted that Green Dot, a provider of prepaid debit cards, had breached consumer law in the marketing of its products and its tax return preparation payment services. The company was also found to have improperly blocked the accounts of legitimate customers who were receiving unemployment benefits, without having appropriate policies in place to rectify these errors.
Green Dot CEO George Gresham responded to the announcement, indicating that the issues stemmed from practices dating back several years. He assured that the company is committed to addressing these shortcomings and working closely with regulators to ensure compliance.
“We have taken and will continue taking meaningful steps to correct and remediate those issues,” Gresham stated.
