Friday, February 7, 2025
3.7 C
London
HomeBankingCFPB orders Apple and Goldman Sachs to pay combined $89m over “Apple...

CFPB orders Apple and Goldman Sachs to pay combined $89m over “Apple Card failures”

Date:

Paysafe Explores Potential Sale Amid Market Challenges

Could a Strategic Sale Turnaround Be on the Horizon...

Adviser Software and Intergen Data Reveal DeepSeek’s Key Risks

A Comprehensive Analysis of Risks Faced by DeepSeek in...

Gemini Explores Potential IPO Opportunities Amid Market Changes

A Deep Dive into Gemini's Strategies for an Initial...
  • 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.

Related stories

spot_img

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories