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Federal Reserve Fines Green Dot $44 Million for Consumer Violations

The financial technology firm faces penalties for deceptive practices and deficient risk management in prepaid card and tax services.

  • Green Dot violated consumer law in marketing, selling, and servicing prepaid debit cards and tax services.
  • The firm failed to disclose fees adequately and blocked legitimate customer accounts receiving unemployment benefits.
  • Green Dot must hire independent third parties to strengthen compliance and review transaction activities.
  • The company's stock dropped 5.7% following the announcement, reflecting investor concerns.
  • Green Dot's CEO stated that the company has taken steps to address and remediate past issues.
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