Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

Federal Reserve fines Walmart-linked Green Dot Corp $44 million after customers lost access to funds

by admin July 23, 2024
July 23, 2024
Federal Reserve fines Walmart-linked Green Dot Corp $44 million after customers lost access to funds

Green Dot Corp., a company that partners with Walmart to sell prepaid debit cards at the retail giant, has been fined $44 million by the Federal Reserve for ‘numerous’ alleged failures that harmed consumers over a period of at least five years.

In a release Friday, the Fed said Austin-based Green Dot had violated consumer law and committed unfair and deceptive practices that resulted in users being unable to access their own money.

The Fed identified instances of purported wrongdoing by Green Dot starting in 2017 and continuing through December 2022 that included failing to properly close accounts and assessing fees on them, and denying certain customers access to funds while offering inadequate ways for those customers to redress the situation.

It also said Green Dot failed to notify customers that they could no longer register debit cards by phone after the company discontinued that service, and that it failed to properly disclose the fee it charged while partnering on tax-refund deposits with TurboTax.

In addition to the fine, Green Dot is required to implement numerous new compliance efforts that Federal Reserve regulators must approve.

Last year, NBC News reported on issues faced by Green Dot card users that extended beyond the timeline identified by the Fed, with affected customers describing ‘nightmare’ scenarios as recently as August 2023 of being unable to pay bills on time because they could not gain timely access to their money.

A Green Dot spokesperson said most of the issues identified by NBC News reporting were the result of a system upgrade.

In a statement Friday, Green Dot CEO George Gresham said the company was ‘pleased to confirm the consent order has been finalized.’

‘The order relates to practices in place years ago, and we have taken and will continue taking meaningful steps to correct and remediate those issues, including significant updates to our processes, our product packaging and marketing, our management team and our compliance programs,’ Gresham said.

‘We are committed to cooperating and partnering closely with our regulators to ensure all concerns noted in the consent order are addressed and complied with and that our customers are well-served and protected on an ongoing basis. As stewards of our customers’ valued resources, we take this commitment and responsibility very seriously.’

Green Dot had signaled in March that an enforcement action was coming as part of its first quarter earnings report.

Representatives for Walmart and TurboTax parent Intuit did not immediately respond to emailed requests for comment.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Delta cancels hundreds more flights as its recovery from global CrowdStrike-Microsoft outage lags
next post
Brent Cook: I’m Sticking to Discoveries — Ideas for Gold, Silver, Rare Earths

Related Posts

Walmart boosts sales outlook as it says tariff...

August 22, 2025

Fed Chair Jerome Powell says inflation has been...

May 15, 2024

Extreme heat makes flying harder. Airlines and airports...

July 30, 2024

Budget airline Spirit is trying to go upmarket...

July 31, 2024

Fintech company Chime files for Nasdaq IPO

May 14, 2025

Amazon AI scammers duped investors out of millions...

March 20, 2025

Why it seems like everyone you know is...

May 29, 2024

AMC bets on premium screens as Hollywood slate...

April 1, 2025

Ulta and Target will end deal for in-store...

August 15, 2025

Boeing investigates quality problem on undelivered 787s, sources...

June 17, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Biden didn’t want intel disseminated showing Ukrainian concerns over family’s ‘corrupt’ business ties: records

      October 8, 2025
    • Cruz clashes with Nigeria over his claims 50,000 Christians killed since 2009 in religious violence

      October 8, 2025
    • House committee withdraws James Comey subpoena for Jeffrey Epstein testimony

      October 8, 2025
    • Government limps deeper into shutdown crisis with no deal in sight

      October 8, 2025
    • Trump meets former Hamas hostage Edan Alexander on Oct. 7 anniversary

      October 8, 2025

    Categories

    • Business (1,116)
    • Investing (3,206)
    • Politics (3,906)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved