Barron's market reporter Jacob Sonnenschein reports that Apple and Google face billions of dollars in taxes and penalties after the European Union Supreme Court ruled against them in Barney & Co. I reacted to what I owed.
The Consumer Financial Protection Bureau (CFPB) on Wednesday ordered Apple and Goldman Sachs to pay $89 million over trade disputes and misrepresentation failures that affected hundreds of thousands of consumers. apple card user.
The CFPB found that how Apple Card customer service handled consumer disputes was broken, as Apple failed to send tens of thousands of disputes to the CFPB. goldman sachs And when it did send the bank in, it failed to comply with federal requirements to investigate the dispute.
The agency noted that both companies released the Apple Card despite third-party warnings about technical issues with the Apple Card dispute system. As a result, it took a long time for consumers to receive refunds from disputed charges, and some consumers were adding false negative information to their credit cards.
The CFPB also noted that many customers thought they were automatically enrolled in interest-free payments, but were charged interest and, in some cases, were denied interest-free payments, leading Apple and Goldman Sachs to offer interest-free payments on Apple devices. It was also revealed that the company had misled consumers about payment plans. If you use certain browsers, payment options are available on the Apple website.
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Apple CEO Tim Cook introduced Apple Card in March 2019. (Noah Berger/via AFP/Getty Images)
The CFPB ordered Goldman Sachs to pay at least $19.8 million in restitution and a $45 million civil penalty, while Apple was ordered to pay a $25 million civil penalty. It also prohibited Goldman Sachs from launching any new financial products. credit card Unless you provide a reliable plan that your product will be legally compliant.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| AAPL | Apple Inc. | 230.76 | -5.10 |
-2.16% |
| G.S. | Goldman Sachs Group, Inc. | 517.17 | -1.09 |
-0.21% |
“Apple and Goldman Sachs unlawfully avoided their legal obligations to Apple Card borrowers.” CFPB Director Rohit Chopra. “The CFPB prohibits Goldman Sachs from offering new consumer credit cards unless it can demonstrate that it can actually comply with the law.”
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Goldman Sachs is Apple's financial partner on the Apple Card. (Andrew Kelly/File Photo/Reuters Photo)
“Apple Card is one of the most consumer-friendly credit cards ever offered,” Goldman Sachs spokesperson Nick Calcaterra told FOX Business. “We have worked diligently to address the specific technical and operational challenges we experienced post-launch, and have already done so with affected customers. We are pleased to have reached a resolution with the CFPB. We are proud to have developed such an innovative and award-winning product alongside Apple. ”
“Apple is committed to providing consumers with fair and transparent information. financial products“Apple Card is one of the most consumer-friendly credit cards available, specifically designed to support users' financial health,” an Apple spokesperson told FOX Business. “It has been done,” he said. When we learned about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address the issues and assist affected customers. ”
“While we strongly disagree with the CFPB's characterization of Apple's conduct, we have worked with the CFPB on the agreement. We look forward to continuing to provide great experiences to Apple Card customers,” Apple said in a statement. The statement is concluded.
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Apple and Goldman Sachs have reached an agreement with the CFPB over the Apple Card issue. (Faris Hadziq/SOPA Images/LightRocket via / Getty Images)
In November 2023, The Wall Street Journal reported Apple has proposed ending its credit card partnership with Goldman Sachs within the next 12 to 15 months.
The Journal previously reported that Goldman Sachs was in talks to acquire the company in the summer of 2023. Transfer your Apple Card partnership to another financial services company.
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