Green Dot Bank, the tiny state-charted Utah bank behind financial products at some of America’s largest companies—including Apple and Walmart—today agreed to pay a $44 million fine previously disclosed by the Federal Reserve. Green’s stock fell 5.7% today to $9.26, and is now 85% off the all-time-high of $63.44 it hit October 2020. The fine does not place any restrictions on the bank's ability to serve its existing clients.
In a statement published this afternoon the Fed said the fine was for “numerous unfair and deceptive practices and a deficient consumer compliance risk management program.” According to the statement, Green Dot violated consumer law in its marketing, selling, and servicing of prepaid debit card products, and its offering of tax return preparation payment services.
