Apple and Goldman Sachs to Pay $98 Million Fine for Apple card Failures

Apple and Goldman Sachs Ordered to Pay $98 Million Fine

The Consumer Financial Protection Bureau (CFPB) announced this week legal action against Apple and Goldman Sachs for customer service breakdowns and misrepresentations that impacted hundreds of thousands of Apple Card users. The two companies will have to pay a total of $89 million.

The CFPB found that Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman Sachs. It also said that when Apple did send these disputes to Goldman Sachs, the bank did not follow numerous federal requirements for investigating the disputes.

CFPB says that Apple and Goldman launched the Apple Card despite third-party warnings to Goldman that the Apple Card disputes system was not ready due to technological issues.

Due to these failures, consumers faced long waits to get money back for disputed charges, and some had incorrect negative information added to their credit reports.

The agency also found that Apple and Goldman Sachs misled consumers about interest-free payment plans for Apple devices. Many customers thought they would automatically get interest-free monthly payments when buying Apple devices with their Apple Card. Instead, they were charged interest.

Goldman Sachs also misled consumers about the application of some refunds, which led to consumers paying additional interest charges.

The CFPB has ordered Goldman Sachs to pay at least $19.8 million in redress and a $45 million civil money penalty, and Apple to pay a $25 million civil money penalty.

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