Apple and Goldman Sachs ordered to pay over $89 million for Apple card failures

Published On Oct 23, 2024, 11:24 AM

Apple and Goldman Sachs have been fined over $89 million by the Consumer Financial Protection Bureau (CFPB) for mishandling consumer disputes related to Apple Card transactions. The CFPB found that many consumer disputes were not sent to Goldman Sachs for investigation, and when they were, the bank failed to comply with federal investigation requirements. The fines include $45 million for Goldman Sachs, $19.8 million for redress to consumers, and $25 million for Apple. Additionally, Goldman Sachs has been barred from launching new credit cards until it can demonstrate compliance with the law. The issue arose from misleading claims about the interest-free payment plans for Apple devices financed through the Apple Card, leading some customers to incur unexpected interest charges. The incident raises concerns about consumer protection standards among tech firms and financial institutions.