The US Federal Reserve has recently announced that it fined US-based fintech Green Dot a staggering USD 44 million for several ‘unfair and deceptive practices’, as well as deficient risk management. Green Dot, a financial technology and bank company headquartered in Texas, which issued prepaid debit cards, allegedly has violated consumer law in marketing those products, as well as its tax return preparation payment services.

Moreover, the Central Bank of the US claimed that the company improperly blocked accounts of legitimate customers who received unemployment benefits and lacked the necessary policies to address these errors. What does Green Dot have to say? In a public statement provided by the company’s CEO, George Gresham, it was mentioned that the issues related to practices from several years ago were already addressed and the company is committed to further mitigate these shortcomings and working with relevant regulators in the industry to address all outstanding matters. About Green Dot The US-based company already counts for over 80 million accounts who have provided customer banking access through Green Dot’s service package, including online bank accounts, debit cards in stores, credit solutions, and deposits and transfers.

Green Dot aims to provide access with simple, modern banking and money management solutions that are at everyone’s fingertips. At the same time, the company builds seamless and secure financial tools for customers, as well as powerful solutions to provide state-of-the-art engagement, trust, and value for partners. Founded in 1999, it counts for over 90,000 retail distribution locations nationwide and provides a suite of banking and financial services, including Banking-as-a-Service (BaaS) and money movement, enabling a series of world-class clients (such as Apple, Intuit, Amazon, Walmart, CVS Pharmacy, and others) to embed and deploy powerful, customised, and scalable banking solutions.

.