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Atlanta fintech company fined for making unauthorized consumer loans | News – Atlanta, Georgia

Atlanta, Georgia 2021-07-19 03:19:30 –

Atlanta — An Atlanta-based financial technology company has been fined $ 2.5 million as a result of a federal investigation into unauthorized loan complaints.

GreenSky Inc. announced on Tuesday that it has signed a contract with the US Consumer Financial Protection Bureau to pay a fine and settle a consumer loan if there is insufficient evidence of customer approval. The company did not accept any liability or misconduct.

GreenSky provides technology that merchants can use to offer point-of-sale loans to consumers who are basically funded by merchants. The company initially promoted home refurbishment loans through retailers such as The 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 allow them to file a loan application. The company’s complaint investigation found that merchants were negligent in at least 1,600 cases.

“GreenSky’s careless business and customer service practices allow merchants to take advantage of vulnerable consumers who need financial assistance to repair their homes and set up loans without their consent. We were able to pay for important retail services, “said Dave Wesio, Deputy Director of CFPB. “It’s just wrong to borrow GreenSky for a loan that consumers didn’t know about. The CFPB doesn’t support the practice of allowing this to happen in the market.”

In addition to the fine, the customer bailout required by the contract is limited to $ 9 million, including $ 3 million in cash and $ 6 million in credit for canceling the loan.

Tim Kaliban, president of GreenSky, said the company has already implemented many of the protocols and business practices required by the contract.

“We are very proud of our record of consumer advocacy,” said Carivan. “The solution to this problem allows us to focus on growing and strengthening our business, which is built on a foundation of integrity and trust.”

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