Green Dot Issues Mea Culpa, Still Working out Final Kinks
Green Dot has taken to social media to apologize for service issues that go beyond its initial reporting that balance inquiries temporarily were unavailable in certain channels, following the third wave of its processing conversion to MasterCard Payment Transaction Services. “Several technical issues have come up over the last week that have impacted the ability of some cardholders to use their cards,” Green Dot said. “These issues ranged from errors associated with balance inquiries to activations and declined transactions.”
The most recent problem has been activating new and replacement cards customers received in the past week. Although such cards appeared to be activated in Green Dot’s system, some weren’t, according to the announcement. The company said it has solved the problem and cards now can be activated, except for a “small number,” which will be fixed as soon as possible. To apologize to inconvenienced customers “who have been impacted and whose cards were unavailable to them,” Green Dot said it will be loading extra money onto cards. The amount was unspecified.
The Pasadena, Calif.-based financial services provider added: “There aren’t enough words to say how sorry we are and how badly we feel. We are taking steps to make sure this never happens again.”
Green Dot’s contrition comes amid a power struggle with its largest investor that has led to a board shakeout. Timothy Greenleaf and Michael Moritz resigned from their positions prior to the company’s annual shareholder meeting Monday. Preliminary proxy vote totals suggest they will be replaced by elected Harvest Capital nominees Saturnino Fanlo and George Gresham. Harvest Capital holds nearly 10 percent of Green Dot’s common stock. Green Dot expects Chairman and CEO Steve Streit will be re-elected, although the company has said it will appoint an independent chairman.