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.
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.
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