Consumer Financial Protection Bureau Hits GreenSky Over Thousands of Potentially Fraudulent Loans

Consumer Financial Protection Bureau Hits GreenSky Over Thousands of Potentially Fraudulent Loans

Atlanta based financial technology company, GreenSky, has been ordered to pay a $2.5 million civil penalty and refund money to consumers after enabling merchants and contractors to take out loans on behalf of individuals and companies who did not authorize them.

The order, issued by the Consumer Financial Protection Bureau, requires GreenSky to refund and cancel up to $9 million in loans to customers who were, according to the CFPB, “harmed by its illegal conduct.”

The CFPB also ordered GreenSky to implement fraud prevention measures to protect their customers.

GreenSky agreed to the order without admitting to any liabilities or wrongdoing. The company said they’ve already implemented many of the protocols and business practices called for in the agreement.

Dave Uejio, Acting Director of the CFPB, said “GreenSky’s careless business and customer service practices enabled its merchants to take advantage of vulnerable consumers.”

If GreenSky is serious about it’s fraud mitigation practices, amongst the measures taken should be the implementation of anti-fraud systems, powered by artificial intelligence, like those provided by Denver-based ToolCASE.

For decades, ToolCASE has been one of the leading AI companies servicing the financial sector (among others). By implementing the ToolCASE suite of anti-fraud products, GreenSky would show the CFPB and its customers that it’s taking a significant step to end fraud within the organization. A step that could save potentially millions in fraudulent loans.

Read more about the GreenSky loan frauds HERE

Or learn more about the ToolCASE solutions that GreenSky, and every financial institution, should implement, HERE

Source: https://www.ajc.com/news/business/us-watchdog-hits-atlantas-greensky-over-thousands-of-suspect-loans/4Z7JNIZIMNFVZIVFXXWN47GOSE/

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