Green Dot Bank is now facing a massive penalty stemming from compliance risk management issues predating the company’s current management.
Green Dot has been hit with a proposed consent order from the Federal Reserve stemming from compliance risk management issues predating the company’s current management, the fintech said Tuesday in its earnings report.
The digital bank set aside an “estimated liability” of $20 million in 2023’s fourth quarter to cover the proposed consent order, the company said but added that the “estimate of the aggregate range of reasonably possible losses” could total $50 million.
“We are confident in our financial and regulatory positions and do not expect this to impact our ability to operate and serve our customers and partners on an ongoing basis,” Green Dot CEO George Gresham said in a statement.
“The regulatory environment is continuously evolving, and we are committed to partnering and fully cooperating with our regulators to ensure our products are designed and marketed in ways that put our customers’ best interests at the forefront.”
Green Dot Bank has faced fraud allegations from various customers who have been locked out of their account from weeks to months.
Many customers are having difficulty receiving a direct response from the bank’s customer service department, with many claiming to have been given the runaround.
What is being done about it? Nothing so far, though many of these reports have been submitted to the Better Business Bureau (BBB).
“My funds are gone. I believe now the bank [Green Dot Bank] is holding it hostage. It’s my SS money and I can’t get it back, they keep extending the date.
I’ll get my new card with my money on it this has been going on since the August 1 and I was in the hospital when I was hacked..I want my money it’s mine not yours green dot,” says Sandra Machuga, who’s reported to FrankNez before.
Also Read: A US Bank is Now Freezing Some Retiree Accounts
Other Banking News Today
Three massive banks are now closing 21 branches after more than two thousand locations shut down last year, sources report.
2023 was a hard year for banks, with many filing to shut down locations with the Office of the Comptroller of the Currency (OCC), reports The-Sun.
Popular companies like Wells Fargo and Chase filed to shut down a total of 1,567 locations, an analysis by The U.S. Sun found.
For the week of February 11 through the 17, Wells Fargo, Bank of America, and PNC filed for another 21 locations to shutter soon, though the dates are unclear at the time.
According to the OCC, the following Wells Fargo locations will shut:
- 1150 E. Vista Way, Vista, California
- 388 Whalley Avenue, New Haven, Connecticut
- 159 Greenwood Avenue, Bethel, Connecticut
- 14731 Biscayne Boulevard, North Miami, Florida
- 4285 US 1 Highway South, St. Augustine, Florida
- 200 South Broadway, Minot, North Dakota
- 2500 Morris Avenue, Union, New Jersey
- 12343 Barker Cypress Road, Cypress, Texas
The same list shows these Bank of America locations will close, and the bank provided the closing dates:
- 1501 Tilton Road, Northfield, New Jersey, closing on August 9, 2024
- 6718 Black Horse Pike, Egg Harbor Township, New Jersey, closing on August 9, 2024
- 6416 San Felipe Street, Houston, Texas, closing on July 9, 2024
- 1925 Dallas Parkway, Plano, Texas, closing on August 9, 2024
- 2015 Coit Road, Plano, Texas, closing on August 9, 2024
Finally, these PNC Bank locations will also shut, but the dates are unknown:
- 105 W Green Street, Athens, Alabama
- 12000 West Forest Hill Boulevard, Wellington, Florida
- 10570 N Michigan Road, Carmel, Indiana
- 60 Southfield Road, Ecorse, Michigan
- 319 Pratt Drive, Indiana, Pennsylvania
- 2401 University Boulevard, Houston, Texas
- 600 Matamoros Street, Laredo, Texas
- 700 San Bernardo Ave, Laredo, Texas
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Also Read: A US Bank is Now Denying Customers Access to Money
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