GreenSky Enters Into an Agreement with the CFPB to Resolve a Previously-Disclosed Inquiry
July 12, 2021 at 15:56 PM EDT
GreenSky, Inc. (NASDAQ: GSKY) today announced that it has entered into an agreement with the Consumer Financial Protection Bureau (“CFPB”) to resolve the previously-disclosed inquiry related to consumer complaints about certain allegedly unauthorized loans. Without admitting any liability or wrongdoing, GreenSky has agreed to pay a civil money penalty of $2.5 million and to provide redress to eligible consumers where there is insufficient evidence of customer authorization that will be capped at $3 million in cash redress (with a minimum remittance of $750,000) and capped at $6 million in credit redress via loan cancellations. As of June 30, 2021, the Company was fully reserved with respect to this matter.
GreenSky President Tim Kaliban said: “We are exceedingly proud of our record of consumer advocacy and have already implemented many of the protocols and business practices called for by the agreement, which protocols and practices have been very well received by our merchants and will only serve to enhance our best-in-class merchant and consumer experience. The resolution of this matter also allows us to devote our full and undivided attention to growing and strengthening our business, which is built on a foundation of integrity and trust. We cooperated fully with the CFPB in connection with its inquiry and respect and value the important role it plays in regard to consumer protection.”
About GreenSky, Inc.
GreenSky, Inc. (NASDAQ: GSKY), headquartered in Atlanta, is a leading technology company Powering Commerce at the Point of Sale® for a growing ecosystem of merchants, consumers and banks. Our highly scalable, proprietary and patented technology platform enables merchants to offer frictionless promotional payment options to consumers, driving increased sales volume and accelerated cash flow. Banks leverage our technology to provide loans to super-prime and prime consumers nationwide. We currently service a $9.3 billion loan portfolio, and since our inception, approximately 3.9 million consumers have financed approximately $29 billion of commerce using our paperless, real time “apply and buy” technology. For more information, visit https://www.greensky.com.