- Penalties Imposed: The Consumer Financial Protection Bureau (CFPB) has ordered Apple and Goldman Sachs to pay nearly $90 million in total penalties and refunds.
- Breakdown of Payments:
- Apple is to pay a $25 million penalty.
- Goldman Sachs must pay at least $19.8 million in customer refunds and a $45 million penalty.
- Allegations:
- Customer Service Issues: The CFPB found that Apple failed to send a significant number of customer disputes regarding Apple Card transactions to Goldman Sachs.
- Investigation Failures: When disputes were sent, Goldman Sachs reportedly did not adhere to federal requirements for investigating them.
- Impact on Consumers: Customers experienced long wait times for refunds and some received incorrect negative information on their credit reports.
- Misrepresentation Claims:
- Both companies misled consumers about interest-free payment plans for Apple devices.
- Goldman Sachs misrepresented the application of refunds, leading to additional interest charges for consumers.
- Regulatory Actions:
- The CFPB director, Rohit Chopra, emphasized the importance of compliance by large tech and financial firms.
- Goldman Sachs is prohibited from offering new consumer credit cards unless it presents a credible plan for legal compliance.
- Background of Partnership:
- Apple selected Goldman Sachs in 2018 to develop its credit card.
- Speculation has arisen regarding the future of this partnership, with reports indicating JP Morgan Chase may replace Goldman Sachs as Apple’s credit card partner.
