Apple, Goldman Sachs ordered to pay more than $89 million over Apple Card failures
Apple and Goldman Sachs must pay more than $89 million over failures related to their joint Apple Card, federal financial regulators announced Wednesday.
The Consumer Financial Protection Bureau (CFPB) said the companies provided inadequate customer service and misrepresented transactions and card features to hundreds of thousands of Apple Card users.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” CFPB Director Rohit Chopra said in a statement. “Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law.”
fund. Goldman Sachs must pay victims nearly $20 million, plus a $45 million civil penalty, according to the agency’s order.
Chopra also said it is banning Goldman from offering another credit card geared to consumers “unless it can demonstrate that it can actually follow the law.”
The tech giant teamed up with the bank to launch the Apple Card in 2019. It allowed Apple to increase sales and spending at its own retail stores, and helped establish Goldman Sachs as a major player in the consumer finance market.
In 2022, Goldman Sachs disclosed that the CFPB was investigating how it handled refunds and billing disputes.
Megan Cerullo
Source: cbsnews.com