The Apple Card has landed Apple and Goldman Sachs in hot water. in a press release noted by The Vergethe Consumer Financial Protection Bureau (CFPB) It said it fined two companies $89 million for Apple Card practices.
The CFPB says Apple failed to forward “tens of thousands” of disputed card transactions to Goldman Sachs. When it ultimately sent the transactions to the investment bank, Goldman Sachs failed to comply with “numerous federal requirements for investigating disputes,” according to the CFPB’s announcement.
Apple and Goldman are also accused of misleading customers about the Apple Card. Some consumers believed they could make interest-free payments to buy an Apple device with their credit card, but interest charges still appeared on their accounts because “it didn’t automatically register as expected.”
Apple is also accused of maintaining an interest-free payment option on its website unless the customer uses the Safari browser. The CFPB also says Goldman Sachs misled customers about applying certain refunds that led to additional interest charges.
The CFPB ordered Goldman Sachs to pay at least $19.8 million in restitution and a $45 million civil penalty. The company is also required to submit a “robust plan” to comply with the law before launching any new credit card products. Apple also received a $25 million civil monetary penalty that will go to the CFPB’s victim assistance fund.
Apple and Goldman Sachs presented Apple Card in 2019advertising it as a product that “can help customers lead healthier financial lives.” Four years later, a report The Wall Street Journal said that Goldman Sachs began to have doubts about the consumer credit industry and thought the venture might be a mistake.
