Jolene R.

FOR IMMEDIATE RELEASE: 03/09/23

Greenlight Debit Card Consumer Alert: Restricted Funds Access, No Customer Support, Not Backed by a Financial Institution, and Disrespect for Existing Consumers

DENVER, CO — Greenlight is a fintech company that issues debit cards for kids with an aim to provide a money management solution for parents and kids with features like parental controls, savings rewards, and investing using fractional shares.

When asked if the Greenlight Debit Card is banked by a legitimate bank, however, customer service representative Ann (who declined to share her last initial) responded, "no, Greenlight only acts as an intermediary." The Greenlight Debit Card states that it is issued by Community Federal Savings Bank.

Moreover, the business extols the virtues of its goods, claiming that youngsters may save their money for bigger purchases thanks to them. Nevertheless, nowhere on their website is a list of the expenditure caps. It was revealed that the spending cap is $1,500 and that they are unable to lift this cap if a kid is saving for a larger purchase than this amount, such as a teen accumulating money to buy a vehicle or any comparable major item purchase, because they are not legally guaranteed by a financial institution.

Once this is discovered, if the parent wishes to remove their money from the account, it can take up to 7-10 business days and recently a consumer even had their money removed and refunded without any authorization given to the company.

The corporation launched a refund despite my repeated requests for them to leave the money alone, the parent said. "I had found a workaround to remove our funds from the account," the frustrated parent stated, "and they took it upon themselves to make a decision regarding our money for us."

According to the FTC, "federal law protects you from unauthorized use of your credit card." If you see a scam, fraud, or a bad business practice, tell the FTC. Go to ReportFraud.ftc.gov, the FTC's website that makes it easy for you to report.

The CEO and customer service staff avoided the matter and failed to address the fact that the money had been moved without the parent's permission when the parent questioned them about the situation.

The company's monthly fees, card replacement costs, and lack of a specialized ATM network are further drawbacks. It is advised to use alternative businesses like gohenry or BusyKid, or even better, a neighborhood credit union where the parent may communicate with the staff and financial institution directly.