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US Fed fines Green Dot $44 million for numerous unfair and deceptive practices

Pete Schroeder
·1 min read
FILE PHOTO: An eagle tops the U.S. Federal Reserve building's facade in Washington

By Pete Schroeder

WASHINGTON (Reuters) - The U.S. Federal Reserve announced on Friday it had fined Utah-based Green Dot $44 million for numerous "unfair and deceptive" practices, as well as deficient risk management.

The central bank said in a statement the firm, which issues prepaid debit cards, violated consumer law in marketing those products, as well as its tax return preparation payment services.

The Fed said the company also improperly blocked accounts of legitimate customers receiving unemployment benefits, and lacked policies to address the errors.

In a statement, Green Dot CEO George Gresham said the issues related to practices from "years ago," and that the firm was committed to addressing its shortcomings and working with regulators.

"We have taken and will continue taking meaningful steps to correct and remediate those issues," he said.

(Reporting by Pete Schroeder in Washington; Editing by Chris Reese and Matthew Lewis)