Apple and Goldman Sachs ordered to pay $89M over Apple Card failures

Published On Oct 23, 2024, 3:54 PM

Apple and Goldman Sachs have been ordered to pay a combined total of $89 million by the Consumer Financial Protection Bureau (CFPB) for mishandling consumer disputes related to the Apple Card. The CFPB found significant flaws in the customer dispute handling process and noted misleading information about interest-free payment plans. As a result, Goldman Sachs faces penalties and is barred from launching new credit cards unless it can prove compliance with regulations. This incident follows Apple’s previous plans to potentially end its partnership with Goldman Sachs in the near future.

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Stock Forecasts

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Negative

The substantial financial penalties and the potential loss of the Apple Card partnership could negatively impact Apple's and Goldman Sachs' reputations and profitability. Given the recent news and its implications on consumer trust and market performance, investors may see a short-term decline in stock values.

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Negative

Goldman Sachs faces regulatory challenges and significant penalties at a time when maintaining consumer trust is crucial. This could affect their stock performance negatively as investors reassess the implications on their credit card business.

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