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.