ATLANTA – An Atlanta-based financial technology company is fined $ 2.5 million after a state investigation into complaints about unauthorized loans.
GreenSky Inc. announced Tuesday that it has entered into an agreement with the US Consumer Financial Protection Bureau (CFPB) to pay the fine and process consumer loans if there is insufficient evidence to support customer authorization. The company did not admit liability or misconduct.
GreenSky offers technology retailers to offer consumers installment loans at the point of sale, which are largely financed by their partner banks. The company initially opened up home finance through retailers like Home Depot, but has since expanded to other areas, including elective surgery.
Between 2014 and 2019, GreenSky received at least 6,000 complaints from consumers who said they did not consent to submitting a loan application. The company’s complaint investigations found that its dealers were at fault in at least 1,600 cases.
“GreenSky’s carefree business and customer service practices enabled its merchants to take advantage of vulnerable consumers who needed financial help in repairing their homes and paying for other vital retail services by lending without consumer consent,” said Dave Uejio. deputy director of the CFPB.
“It is just wrong for consumers to go into debt with GreenSky for loans they did not know about. The CFPB will not stand for practices that enable such behavior in the market. “
Aside from the fine, customer redress required in the agreement is capped at $ 9 million, including $ 3 million in cash and $ 6 million in credit through loan cancellations.
GreenSky President Tim Kaliban said the company has already implemented many of the protocols and business practices required in the agreement.
“We are extremely proud of our experience in consumer advertising,” said Kaliban. “Resolving this issue also enables us to devote our full and undivided attention to growing and strengthening our business, which is built on a foundation of integrity and trust.”