CFPB Fines Goldman $64.8M, Apple $25M; Bars Goldman from New Cards over Apple Card Violations

Oct 23, 2024, 02:14 PM

Goldman Sachs and Apple have been ordered by the Consumer Financial Protection Bureau (CFPB) to pay over $89 million in fines and penalties related to their Apple Card credit card business. Goldman Sachs will pay a total of $64.8 million, including a $45 million penalty and $19.8 million in redress, while Apple will pay a $25 million penalty. The CFPB found that the companies violated consumer protection laws by mishandling customer disputes and making misrepresentations that affected hundreds of thousands of Apple Card users. The violations included Apple failing to send tens of thousands of consumer disputes from Apple Card transactions to Goldman Sachs. As a result, the CFPB has prohibited Goldman from offering new credit cards unless it can demonstrate compliance with legal requirements.