In a significant regulatory action, the Consumer Financial Protection Bureau (CFPB) said Wednesday it has fined Apple and Goldman Sachs over $89 million for the mishandling of Apple Card disputes and misleading consumers about interest-free payment options.
CFPB Fines Apple, Goldman Sachs $89m for Mishandling Apple Card Disputes
The CFPB said it found that Apple failed to send tens of thousands of consumer disputes to Goldman Sachs, the issuing bank for Apple Card. When disputes were eventually sent, Goldman Sachs did not follow federal requirements for investigating them, leading to delays in refunds and negative credit reporting.
Additionally, Apple and Goldman Sachs reportedly misled consumers about interest-free payment plans for Apple devices.
The CFPB explained that many customers believed they would automatically receive interest-free financing when purchasing Apple products with their Apple Card, but in many cases, interest was charged unexpectedly.
The CFPB has ordered Apple to pay a $25 million civil penalty, while Goldman Sachs must pay at least $19.8 million to affected customers and a $45 million civil penalty.
Furthermore, prior to Goldman Sachs launching a new credit card, it must give the CFPB a credible plan for how the product will comply with the law.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers. Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law,” stated CFPB Director Rohit Chopra. “The CFPB is banning Goldman Sachs from offering a new consumer credit card unless it can demonstrate that it can actually follow the law.”
