GreenSky Servicing LLC (“GreenSky”), which arranges on-the-spot financing for home improvements through its participating contractors, agreed to the settlement terms in an Assurance of Voluntary Compliance (“AVC”) that resolves the investigation into whether the company’s lending program violated New Jersey’s consumer protection laws.
The investigation stemmed from complaints from consumers who alleged they were unaware that home improvement loans had been taken out in their names; were not given the opportunity to read or sign loan documents before becoming obligated on the loans; and/or were not provided with the loan documents after agreeing to the loan. Consumers also complained that GreenSky held them liable for loans where no home improvement work had been performed.
“This settlement provides a meaningful benefit to New Jersey consumers who finance the purchase of home improvements through contractors participating in the GreenSky program,” said Attorney General Porrino. “Consumers will be provided with important disclosures at the earliest possible time, and contractors will be held to stiffer standards through GreenSky’s monitoring, as required by the settlement.”
“Home improvement projects are expensive. Consumers must have full disclosure when selecting funding sources,” said Steve Lee, Director of the Division of Consumer Affairs. “This settlement demonstrates our commitment to ensuring that New Jersey consumers are provided all the information entitled to them under the law to help them make important decisions as to financing.”
Under the terms of the AVC, GreenSky will resolve outstanding consumer complaints by issuing refunds ranging from $3,383 to $15,812 to five consumers; forgive a $3,622 loan to another consumer; and issue credit report corrections on behalf of four other consumers.
GreenSky also agreed to makes changes in its business practices, including:
Investigator Loretta Creggett of the Division of Consumer Affairs’ Office of Consumer Protection conducted this investigation.
Deputy Attorney General Jeffrey Koziar, from the Consumer Fraud Prosecution Section within the Division of Law, represented the Division in this matter.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504- 6200.
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