Apple Card has put Apple and Goldman Sachs in a quagmire. In a press release reported by The Verge, the Consumer Financial Protection Bureau (CFPB) announced that it has fined both companies a total of $89 million for conduct related to Apple Card.
The CFPB says Apple failed to send “tens of thousands” of disputed card transactions to Goldman Sachs. The CFPB said Goldman Sachs failed to comply with “numerous federal requests regarding dispute investigation” when it ultimately sent the transaction to the investment bank.
Apple and Goldman are also accused of misleading customers about the Apple Card. Some consumers believed they could pay for their Apple devices interest-free with a credit card, but interest still showed up on their bills “because they were not automatically enrolled as expected.”
Apple has also been accused of continuing to exclude its interest-free payment options from its website if customers are not using the Safari browser. The CFPB also alleges that Goldman Sachs misled customers about the applicability of some refunds and charged additional interest fees.
The CFPB ordered Goldman Sachs to pay at least $19.8 million in restitution and a $45 million civil penalty. Companies are also required to present a “credible plan” to comply with the law before launching new credit card products. Apple also received a $25 million civil penalty that will be donated to the CFPB’s Victim Relief Fund.
Apple and Goldman Sachs introduced the Apple Card in 2019, touting it as a product that “helps customers live healthier financial lives.” Four years later, the Wall Street Journal reported that Goldman Sachs was beginning to have doubts about the consumer finance industry and wondered if the business was a mistake.
