Consumer reports or industry analysis reports

Goldman Sachs and Apple Fined Over $89 Million by CFPB for Apple Card Violations, Misleading Consumers

Oct 23, 2024, 02:49 PM

Goldman Sachs and Apple have been ordered by the Consumer Financial Protection Bureau (CFPB) to pay a combined total of over $89 million in penalties due to violations related to their joint Apple Card credit card business. The CFPB's investigation found that the two companies mishandled consumer disputes, misled consumers about interest-free payment options, had customer service breakdowns, and made misrepresentations that affected hundreds of thousands of Apple Card users. Apple failed to send tens of thousands of consumer disputes from Apple Card transactions to Goldman Sachs. Goldman Sachs is required to pay $19.8 million in customer redress and a $45 million penalty, totaling $64.8 million, while Apple is fined $25 million. Additionally, the CFPB prohibits Goldman Sachs from offering new credit cards unless they can demonstrate compliance with consumer protection laws, stating that the companies violated federal regulations and deceived Apple Card customers.