Apple’s financial partner, Green Dot, is dealing with a massive fine by the Federal Reserve amounting to $44 million for its tax-preparation services.
Utah-based Green Dot is a bank used by big companies like Walmart and Apple for financial backing services. Apple, regardless of its cash reserves, is legally obliged to utilize bank partners for transactions including Apple Cash and installment payments. The government of the United States discovered that Green Dot took part in numerous deceptive and unfair practices that were connected to the services offered by the bank, as well as their program for consumer compliance risk management that was deficient.
The bank received a penalty for not making fees known related to its tax refunds. Marketing practices that were likewise deceptive with their prepaid debit cards were also pointed out by the Fed. Other than the $44 million fine, the bank was ordered to hire a third-party independent firm to review Green Dot’s practices with regard to transactions.
