GreenSky Enters Into an Agreement with the CFPB to Resolve a Previously-Disclosed Inquiry
July 12 2021 - 3:56PM
Business Wire
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210712005772/en/
Brinker Dailey 470-284-7017 investors@greensky.com
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