Apple and Goldman Sachs must pay $89 million for mishandling Apple Card transactions, CFPB orders
A federal regulator has ordered Apple and Goldman Sachs to pay a combined $89 million for deceiving consumers and mishandled Apple Card customers' transaction
NEW YORK — A federal regulator on Wednesday ordered Apple and Goldman Sachs to pay a combined $89 million for deceiving consumers and mishandled transaction disputes of Apple Card customers.
The Consumer Finance Protection Bureau orders point to “customer service breakdowns and misrepresentations” around Apple and Goldman's credit card partnership. Apple failed to send tens of thousands of Apple Card disputes to Goldman, and when such customer disputes were reported, the investment bank did not follow federal requirements for investigating, the agency said.
As a result, many consumers faced long waits to get their money back from disputed charges and, in some cases, saw incorrect negative information added to their credit reports, the CFPB added.
Apple and Goldman were also accused of misleading people who purchased iPhones and other Apple devices about interest-free payments for the credit card. The CFPB found that many customers thought they would automatically get interest-free financing when buying an Apple device with Apple Card, for example, but were instead charged that interest, while Goldman misled consumers about some refund applications.
In a statement, Apple said it learned about the “inadvertent issues” years ago and address them along with Goldman Sachs, adding that it strongly disagrees with the CFPB’s characterization of its conduct. The California tech giant added that “Apple Card is one of the most consumer-friendly credit cards available, and was specifically designed to support users’ financial health.”
Goldman spokesperson Nick Carcaterra
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