Apple and Goldman Sachs Fined $89 Million for Deceiving Apple Card Customers
The Consumer Financial Protection Bureau found that Apple failed to report tens of thousands of disputed transactions.
Hefty Fines for Apple and Goldman Sachs
Apple and Goldman Sachs find themselves in hot water. A report by The Verge revealed that the Consumer Financial Protection Bureau (CFPB) has slapped the companies with a combined fine of $89 million over issues related to the Apple Card.
Unresolved Disputed Transactions
The CFPB has accused Apple of failing to forward “tens of thousands” of disputed transactions to Goldman Sachs. When Apple eventually did so, Goldman Sachs allegedly failed to meet “numerous federal requirements for investigating the disputes,” according to the CFPB’s statement.
Deceptive Practices Allegations
Apple and Goldman Sachs are also charged with misleading customers about the terms of the Apple Card. Consumers were led to believe they could make interest-free purchases of Apple devices, yet interest fees were still applied due to them not being automatically enrolled as promised. Additionally, Apple is accused of removing the interest-free payment option from its website for users not on the Safari browser. The CFPB also claims that Goldman Sachs misled clients about the application of certain refunds, which resulted in additional interest charges.
Financial Penalties
The CFPB has ordered Goldman Sachs to pay at least $19.8 million in restitution and a $45 million civil penalty. The bank is also required to present a “credible plan” to comply with laws before launching any new credit card products. Apple has been fined a civil penalty of $25 million, which will contribute to the CFPB’s victim relief fund.
Introduced in 2019, the Apple Card was touted by Apple and Goldman Sachs as a product that would “help customers lead a healthier financial life.” Four years later, a report from the Wall Street Journal suggested that Goldman Sachs was starting to question the consumer credit industry, pondering if venturing into it might have been a misstep.