Attorney General Ken Paxton (R) announced a multistate settlement with GreenSky Holdings, LLC and GreenSky, LLC after a Texas-led investigation uncovered what officials described as deceptive and unlawful lending practices that targeted consumers, including senior citizens and disabled Texans.
Under the agreement, GreenSky will pay a total of $10 million covering consumer restitution, civil penalties, and additional fees distributed among participating states.
"Any company operating predatory loan schemes that make life harder for Texans, including causing higher housing prices, will be forced to pay the price," said Paxton. "GreenSky broke the law, and now the company is being held accountable for taking advantage of consumers."
GreenSky is a financial technology company that facilitates point-of-sale loans for home improvement projects and previously offered healthcare-related financing. According to the Attorney General's Office, some loans reached up to $25,000 and carried interest rates as high 25% APR.
Texas joined the multistate investigation after receiving numerous complaints from consumers connected to merchants working with GreenSky. Investigators alleged that some Texans were issued loans without their knowledge, while others were misled about loan terms and repayment obligations.
The investigation also found allegations that elderly individuals, including Texans suffering from dementia, were pressured into agreements they did not legally consent to.
According to the settlement announcement, some consumers claimed GreenSky failed to cancel loans after valid cancellation requests were made. Others reportedly remained financially responsible for home improvement loans even when no services or work had actually been completed.
In addition to the financial penalties, the settlement imposes new injunctive requirements intended to prevent future misconduct. Those measures include enhanced protections for senior citizens and disabled individuals, along with mandatory annual compliance reporting to participating state attorney general.
The settlement marks another consumer protection action by Paxton's office targeting financial and lending companies accused of deceptive business practices affecting Texans.
