Green Dot Bank, most widely known for its association with Wal-Mart and Turbo Tax, received a Federal Reserve consent order over alleged faulty consumer practices and money laundering.
A consent order from the Federal Reserve means the government regulator can increase its monitoring or enforcement of the bank’s compliance with monetary requirements, bank-specific requirements, or other mandatory directives under the law.
Green Dot’s activities under question stretch back to 2014 when the cards were involved in criminal activities in New York. Customers report their problems began as early as 2017 when a lack of access to their cards prevented them from purchasing daily staples such as food, gas, and utilities.
The bank estimates its liability could be over $20 million but assures its customers that it has worked hard to change its culture, that it’s not the same bank it was in 2017, and that it takes the consent order seriously.
Though the bank has ongoing lawsuits and has admitted technical issues with consumer access to cards, a spokesperson for the bank says Green Dot is working closely with the Federal Reserve to resolve its issues and work in the best interests of its customers.