GreenSky, LLC has agreed to refund or cancel up to $9,000,000 in loans for allowing third parties to originate loans without their authorization.

In a recent Consent Order, GreenSky, LLC has agreed to repay or cancel $9 million in loans, pay $2.5 million in civil penalties, and work to prevent fraudulent loans. As a part of my consumer protection practice, I see more and more frequently loans that are given to contractors without the express authority of the person or persons who will ultimately be liable – the homeowner. This was typically done through assignments of benefits under insurance contracts (which I have also fought against), but is becoming increasingly more common for loans which appear to be PACE (Property Accessed Clean Energy) loans. This is often done for loans which promise to give homeowners more energy efficient options for heating or cooling their property – namely solar panels. This is precisely what GreenSky has agreed that it did.

One of these companies is GreenSky, LLC

I have dealt with this company before. Typically, GreenSky, LLC is a third-party financier for other companies which sell a solar energy product (solar panels, solar air conditioning, solar water heater, etc.) They have been accused of “careless business and customer service practices” which allows merchants to “take advantage of vulnerable consumers who needed help to repair their homes”. To do this, GreenSky was accused of, and agreed that it, originated loans without the express authorization of the homeowner.

Most people don’t know that GreenSky is not a bank. It uses merchants, contractors, or businesses, to force a homeowner to repay a loan without agreeing to the terms, without having express disclosures of the true cost of the loan (Truth in Lending), or to challenge the draws based on the amount or quality of the work that was done for them. In fact, consumers have claimed that they never applied for a loan, never heard of GreenSky, LLC, and only found out about them after receiving statements or collection letters.

The CFPB and GreenSky agreed that this was unfair.

In fact, Greensky agreed that it processed over 6,000 complaints from consumers who had no idea who the company was and that there was no authorization to submit a loan package. In 1,600 of these instances, the merchant was to blame.

Greensky further agreed that it failed to create and implement appropriate protections for consumers during the loan process which actually allowed for unauthorized loans and they did not respond adequately to consumer complaints.

Do you believe you were a GreenSky victim?

Do you want to learn more? I am ready to help you. It’s easy to set up a consultation with me through my office. I offer 3 easy ways to connect with me: (1) contact my office via phone at 813.502.6768, (2) you can e-mail me, or you can schedule a time to speak with me online.

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Bryant H. Dunivan Jr., Esq.

Partner at Owen & Dunivan, PLLC
Attorney Bryant Dunivan is a foreclosure, real estate, and consumer protection attorney who focuses his efforts on making his clients feel like people and not just a file. Just Served? I offer a free consultation. Contact me today.

Attorney Bryant Dunivan is a foreclosure, real estate, and consumer protection attorney who focuses his efforts on making his clients feel like people and not just a file. Just Served? I offer a free consultation. Contact me today.

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