Paxton Secures $10 Million Settlement in Loan Scheme Targeting Seniors

May 29, 2026 – Texas Attorney General Ken Paxton has announced a $10 million multistate settlement with financial technology company GreenSky following an investigation into deceptive lending practices that disproportionately targeted senior citizens and vulnerable Texans.

The Texas-led investigation uncovered widespread complaints from consumers who said loans were issued without their knowledge, terms were misrepresented, and in some cases, elderly individuals—including those suffering from cognitive conditions—were pressured into agreements they could not legally consent to. Officials also found that some borrowers were held financially responsible for home improvement loans despite no work ever being completed.

GreenSky, which facilitates point-of-sale loans for home improvement and previously for healthcare services, offered financing up to $25,000 with interest rates reaching as high as 25% APR. According to investigators, these practices not only harmed individuals but also contributed to rising housing-related costs by enabling inflated or fraudulent transactions.

“Any company operating predatory loan schemes that make life harder for Texans, including causing higher housing prices, will be forced to pay the price,” Paxton said in a statement. “GreenSky broke the law, and now the company is being held accountable for taking advantage of consumers.”

Under the agreement, the $10 million will go toward consumer restitution, civil penalties, and fees distributed among participating states. The settlement also includes new safeguards designed to prevent similar abuses, including stronger protections for senior citizens and disabled individuals, as well as mandatory annual compliance reporting.

The case highlights ongoing concerns about predatory lending practices, particularly those targeting vulnerable populations, and signals increased scrutiny of financial institutions operating in consumer lending spaces.