GreenSky Agrees to $10 Million Settlement
Point-of-sale home improvement financing firm GreenSky has agreed to pay $10 million to settle claims that it deceived and exploited senior citizens and disabled individuals, according to Texas Attorney General Ken Paxton. The settlement comes after several attorneys general took action against the Atlanta-based company following complaints of unauthorized loans and concerns about the oversight and training of businesses that offered financing through GreenSky.
Exploitation of Vulnerable Populations
Reports indicated that some businesses associated with GreenSky took out loans in consumers’ names without their consent. Specifically, seniors, including those with dementia, were targeted and pressured into agreements they did not legally consent to. Paxton’s office emphasized that companies engaging in predatory loan schemes that harm consumers will face consequences. GreenSky was found to have broken the law by taking advantage of vulnerable individuals.
A spokesperson for GreenSky mentioned that the investigation began approximately six years ago under prior ownership. The company stated that it had not admitted to any liability or wrongdoing in the matter. The settlement aligns with GreenSky’s current consumer protection processes, including account verification, loan terms disclosure, borrower complaint handling, and merchant oversight.
Restitution for Affected Consumers
Consumers alleged that GreenSky failed to cancel loans when requested and, in some cases, held individuals financially responsible for home improvement loans despite no services being provided. The agreement reached with Paxton’s office prevents GreenSky from engaging in such conduct in the future. Additionally, a restitution process will be established to provide affected consumers with redress for any financial harm they suffered.
The settlement involved attorneys general from Georgia, Florida, Alabama, and the District of Columbia. As part of the agreement, GreenSky will pay a $575,000 civil penalty, reimburse attorneys general for $2.9 million in fees and costs, and allocate $6.5 million for customer restitution.
Class-Action Lawsuit and Ongoing Legal Issues
Aside from the settlement, GreenSky is facing a class-action lawsuit in the U.S. District Court for the Northern District of California. Plaintiffs in the case allege that GreenSky imposed undisclosed and illegal fees on borrowers and operated as an unlicensed credit services organization, finance lender, and broker in California.
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