Federal Reserve Fines Green Dot $44 Million for Consumer Law Violations and Risk Management Deficiencies

Jul 19, 2024, 07:12 PM

The Federal Reserve has fined Green Dot Corp. $44 million for numerous violations related to the firm's handling of prepaid debit cards and tax preparation payment services. The Utah-based company, which partners with Walmart to sell these cards, was found to have engaged in unfair and deceptive practices over a period of at least five years. The Federal Reserve cited Green Dot for violating consumer law, blocking access to legitimate accounts receiving unemployment benefits, and lacking proper policies to address these errors. Additionally, the firm was penalized for deficiencies in its marketing and risk management practices.