$90 Million Penalty for Apple and Goldman Sachs on Credit Card Failures

Mishandling of customer disputes and other problems regarding Apple Card payments landed the vendor and its partner Goldman Sachs with a combined $89.8 million penalty in the US. The Consumer Financial Protection Bureau (CFPB) ruled the companies failed to meet their legal obligations.

The CFPB noted hundreds of thousands of Apple Card customers were impacted by a breakdown in customer service and misrepresentation after it found the device maker had not provided Goldman Sachs with details of disputes or the bank failed to properly investigate those that were sent through. Consumers faced lengthy waits to recoup disputed fees and some had erroneous information added to their credit reports.

The regulator noted Goldman Sachs ignored warnings Apple’s dispute handling system was not technologically capable before it launched the credit card product. The companies also misled consumers about interest-free payment schemes covering the vendor’s devices, with many not realizing this was not triggered automatically. Apple also failed to even offer its interest-free option on some browsers, the CFPB stated.

CFPB director Rohit Chopra said the companies sidestepped their legal obligations. Goldman Sachs's portion of the fine involves at least $19.8 million in redress and a $45 million civil penalty, while Apple was penalized with $25 million. The CFPB also prohibited Goldman Sachs from launching a new credit card unless it can provide a credible plan that the product will actually comply with the law.