Goldman Sachs, CFPB, and Apple Card: A $89 Million Misleading Charges Saga

The Consumer Financial Protection Bureau's Action Against Goldman Sachs and Apple

The Consumer Financial Protection Bureau (CFPB) has imposed a hefty fine of $89 million on Apple and {{Goldman Sachs}} for misleading customers regarding the Apple Card. The CFPB’s scrutiny revealed that Apple failed to communicate “tens of thousands” of disputed transactions to Goldman Sachs, who, in turn, neglected to fulfill multiple federal requirements for investigating these disputes.

Misleading Information About the Apple Card

• The CFPB noted that countless customers were misled about their ability to make interest-free payments when purchasing Apple devices with the Apple Card.
• Many consumers were unaware they needed to opt-in to this feature, leading to unexpected interest charges.
• Furthermore, allegations arose that Apple did not present its interest-free payment option clearly on its website unless users were on the Safari browser.

Goldman Sachs also faced accusations of misleading customers regarding the application of refunds that had resulted in additional interest charges. Under the CFPB's directive, Goldman Sachs must pay $19.8 million in redress and a civil penalty of $45 million. Apple will contribute $25 million to the CFPB's victims relief fund.

The Launch of the Apple Card in 2019

Launched in 2019, the Apple Card pitched itself as a product aimed at helping customers maintain a healthier financial life. However, four years later, concerns from Goldman Sachs suggested doubts about the efficacy of the consumer lending business within the tech sector.