Texas Attorney General Ken Paxton secures $10 million settlement after investigation into deceptive loan practices
Texas – Texas Attorney General Ken Paxton announced a multistate settlement with GreenSky Holdings, LLC and GreenSky, LLC following an investigation that uncovered alleged deceptive lending practices affecting consumers, including senior citizens and disabled Texans.
The agreement comes after a Texas-led investigation examined complaints involving GreenSky, a financial technology company that facilitates loans for home improvement projects and previously offered financing for health care services.
Under the settlement, a total of $10 million has been secured through consumer restitution, civil penalties, and other payments to participating states.
Attorney General Paxton said the action sends a clear message to companies that engage in unlawful lending practices.
“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 Attorney General Paxton. “GreenSky broke the law, and now the company is being held accountable for taking advantage of consumers.”
Investigation Revealed Consumer Complaints
The Office of the Attorney General joined the multistate investigation after receiving numerous complaints from Texans involving businesses connected to GreenSky’s financing services.
According to investigators, consumers reported that loans were sometimes issued without their knowledge or full consent. Other complaints alleged that loan terms were not accurately explained and that borrowers were misled about the details of their agreements.
Particularly troubling were reports involving elderly consumers and individuals with disabilities. Authorities said some complaints described situations in which seniors, including people suffering from dementia, were allegedly targeted and pressured into entering loan agreements they may not have fully understood or legally consented to.
Officials also reviewed allegations that GreenSky failed to cancel loans when valid requests were made by consumers. In other situations, borrowers claimed they remained responsible for loan payments even when the promised home improvement work was never completed.
GreenSky’s financing products varied in size, with some loans reaching as much as $25,000. Interest rates on certain loans could climb as high as a 25% annual percentage rate.
New Protections Included In Settlement
Beyond the financial settlement, the agreement includes measures designed to prevent similar issues from occurring in the future.
State officials said GreenSky will be subject to injunctive provisions that require additional oversight and compliance efforts. These requirements include stronger protections for senior citizens and disabled individuals who may be vulnerable to deceptive sales practices.
The company will also be required to provide yearly compliance reports to the Office of the Attorney General as part of ongoing monitoring efforts.
Texas officials said the settlement represents an important step toward protecting consumers and ensuring companies that provide financing services obey the law. The agreement aims not only to compensate affected consumers but also to strengthen safeguards intended to prevent future misconduct and improve accountability in the lending marketplace.
