The U.S. Consumer Financial Protection Bureau on Monday said it has fined an Atlanta-based financial technology firm US$2.5 million for processing and servicing loans to consumers who did not request or authorize them to do so.
GreenSky, LLC is a mobile app that connects merchants and banks with customers who are usually seeking financing for mostly home-improvement projects.The CFPB also ordered the company to refund or cancel up to US$9 million in loans it allowed outside merchants to promote and offer consumers. The agency found the lender to have acted unfairly toward consumers by failing to"create and implement appropriate and effective controls during the loan application, approval, and funding processes," as well as failing to"implement adequate merchant training and oversight."
"We cooperated fully with the CFPB in connection with its inquiry and respect and value the important role it plays in regard to consumer protection," GreenSky President Tim Kaliban said.