CFPB Fines Goldman Sachs and Apple $89 Million, Bars Goldman from New Credit Cards

Oct 23, 2024, 04:08 PM

Goldman Sachs and Apple have been ordered by the Consumer Financial Protection Bureau (CFPB) to pay over $89 million in penalties for violations related to their joint Apple Card credit card business. The CFPB's investigation found that the companies mishandled customer disputes, misrepresented information, and failed to comply with consumer protection laws, affecting hundreds of thousands of Apple Card users. Goldman Sachs failed to handle tens of thousands of consumer disputes properly, and some customers received incorrect credit reports. Additionally, the companies misled iPhone purchasers about interest-free payment options. Goldman Sachs is required to pay $19.8 million in customer redress and a $45 million penalty, while Apple must pay a $25 million penalty. The CFPB has also prohibited Goldman Sachs from offering new credit cards unless it can demonstrate compliance with the law. The enforcement action highlights challenges in Goldman Sachs' venture into consumer banking products.