Apple and Goldman Sachs Must Pay Nearly $90 Million Over Apple Card Inquiry – The New York Times

Federal regulators on Wednesday ordered Goldman Sachs and Apple to pay combined fines of more than $89 million over their handling of credit card operations that affected hundreds of thousands of Apple Card users. commanded.

The investment bank was ordered to pay a $45 million fine by the Consumer Financial Protection Bureau, and Apple was fined $25 million. In addition, Goldman must pay at least $19.8 million in refunds to customers. Regulators have barred Goldman from offering new credit cards unless it provides a “credible plan” to show the products comply with the law.

The CFPB's long-running investigation examined Goldman's customer service practices, particularly its handling of fraud and refunds in its credit card partnership with Apple. The investigation found that the companies' actions left customers with inaccurate credit reports and unresolved billing disputes.

CFPB Director Rohit Chopra said in a call with reporters Wednesday that Apple and Goldman failed to adequately handle customer disputes. Mr. Chopra added that even when Goldman was alerted to disputes, it often failed to comply with federal requests to investigate and resolve disputes in a timely manner.

The agency also found that Goldman and Apple misled consumers about interest-free payment options for Apple products, leading customers to believe that if they purchased Apple products with an Apple Card, they would receive interest-free financing, but they still charged large amounts of interest. He said he had filed a claim.

“Execution was chaotic,” Chopra said, referring to the 2019 launch of credit card partnerships.