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