Goldman Sachs and Apple have been fined over $89 million by the U.S. Consumer Financial Protection Bureau (CFPB) for allegedly failing to meet their legal obligations in managing the Apple Card, as reported by Joshua Franklin and Michael Facton for Financial Times. The fines underscore the challenges both companies face in navigating consumer finance, a significant shift for Goldman from its core investment banking and trading services. CFPB Director Rohit Chopra stated that Goldman is banned from launching a new consumer credit card until it proves compliance with legal requirements.
The CFPB’s complaints suggest issues in Goldman’s handling of disputed transactions, alleging it did not fulfil federal standards in resolving customer claims. Apple and Goldman have denied wrongdoing but have agreed to an arrangement with the regulator. The CFPB also cited misleading information provided to customers regarding interest-free payment plans for Apple products.
Goldman has allocated $19.8 million for customer redress and an additional $15 million in penalties, while Apple will pay $25 million in fines. Goldman, currently scaling back its consumer-focused services, is reportedly exploring a potential handover of its Apple Card partnership to JPMorgan.
