GreenSky Lawsuit Claims Company Is Illegally Operating as a Lender

According to some consumer reports and at least one recent lawsuit, financing and payments technology company GreenSky may be acting as a lender despite not having the proper licenses.

GreenSky Lawsuit Alleges Unlicensed Company Charges Illegal Fees

Plaintiff Reginald M. of Missouri filed his lawsuit against GreenSky in early October 2019. According to him, he received a GreenSky Installment Loan Agreement after signing a contract for a solar system costing approximately $24,000 in July 2016.

However, he claims that he did not sign the installment loan agreement, which listed a financing amount of $10,000 with an interest rate of 26.99 percent. Reginald says the loan agreement would require him to make 84 monthly payments of approximately $300 if he decided to pay the loan off over time.

Under the terms of the agreement, Reginald would be required to make payments directly to GreenSky, the lawsuit claims. However, Reginald says the lender listed on the agreement was Regions Bank. Although GreenSky is not licensed as a lender and describes itself as merely a link between contractors, customers, and banks, Reginald claims that the company may be operating illegally as a lender. According to his GreenSky lawsuit, the company may be profiting by partnering with larger banks who have little or no knowledge of the actual consumers and loans they are affiliated with.

Reginald says he paid off his loan of $10,000, as well as paying an additional $2,625.86 in fees and interest. However, he claims that as the company is not licensed as a lender, the fees and interest assessed against him are illegal. According to Missouri law, lenders are required to register with the Missouri Division of Finance. Additionally, consumer installment lenders are not allowed to charge more than ten percent of the principal, or up to $100, on closed-end loans with a length of more than 30 days. As GreenSky allegedly charges fees in excess of $100 on a routine basis, the company may be in violation of the law.

GreenSky Lawsuits and Complaints

Other consumer complaints against GreenSky include allegations that the company offers loan terms that the banks it is affiliated with don’t, decides which merchants and customers are granted credit, controls the entire life-cycle of consumer loans, and controls the terms of credit that consumers are offered. Due to GreenSky’s lack of a lender license, these actions may be illegal, or lead to increased fees for consumers. Online complaints lodged by consumers against the company include claims that GreenSky charges hidden fees and finance charges, and may even charge interest fees during advertised no-interest periods.

Another lawsuit filed against GreenSky in 2019 claims that the company preys on elder people by using intimidation tactics to manipulate consumers into obtaining loans with high interest rates and fees.

If you have obtained a loan through GreenSky before 2017, you may be eligible to join an investigation into potentially predatory practices by the company. Victims who qualify to hire an attorney and file a GreenSky lawsuit may be able to recover compensation.

UPDATE: The GreenSky Predatory Lending investigation is now open! If you used GreenSky to finance a home improvement project in Northern California, submit your information here.

Join a Free GreenSky Credit Class Action Lawsuit Investigation

If you obtained a loan through GreenSky before 2017 in California, Florida, Missouri, or any other state, you may qualify to join this GreenSky lawsuit investigation.

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This article is not legal advice. It is presented
for informational purposes only.