The Consumer Financial Protection Bureau says Apple and Goldman Sachs failed to properly handle disputes, other issues.
Apple and Goldman Sachs were hit with over $89 million in fines on Wednesday over technical issues related to the Apple Card. The Consumer Financial Protection Bureau brought the action.
The crux of the CFPB’s case is that both Apple and Goldman Sachs—neither of whom have much prior experience in consumer lending—were inept in their rollout of the Apple Card, which was introduced in 2019. The credit card is deeply integrated into iOS and has served as another potentially lucrative business for Apple, which has been looking more towards services for growth. Goldman for its part wanted to expand beyond investment banking into consumer lending.
The CFPB outlined several other issues it identified with the Apple Card. The biggest one centers around the dispute process. The agency says that Goldman Sachs was too slow to follow up on consumer disputes submitted by cardholders—an issue that has proliferated Reddit discussions since the card was introduced.
The partnership between Goldman Sachs and Apple was fraught from the beginning. It’s been reported that Goldman gave Apple a lot of concessions in order to get the deal, including accepting lower fees in order to give consumers generous cashback and making the card available. Goldman has reportedly lost more than $6 billion on the Apple Card—including on defaults from those subprime cardholders—and has beenwith Apple for quite some time.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Apple and Goldman Sachs ordered to pay over $89 million for Apple card failuresApple and Goldman Sachs were fined more than $89 million for mishandling consumer disputes of Apple Card transactions, the CFPB said.
Read more »
Apple and Goldman Sachs fined millions for misleading Apple Card holdersThe Consumer Financial Protection Bureau has announced fines totaling $89 million against Apple and Goldman Sachs over Apple Card issues.
Read more »
Apple, Goldman Sachs ordered to pay more than $89 million over Apple Card failuresApple and Goldman 'illegally sidestepped' their obligations to Apple Card customers, federal regulators say.
Read more »
Apple and Goldman Sachs ordered to pay $89M after Apple Card failuresThe U.S. Consumer Financial Protection Bureau ordered Goldman Sachs and Apple to pay $89 million, and Goldman was temporarily banned from issuing new credit cards due to mishandling the Apple Card partnership.
Read more »
Apple and Goldman Sachs ordered to pay more than $89 million for Apple Card failuresApple and Goldman Sachs were fined more than $89 million for mishandling consumer disputes of Apple Card transactions, the CFPB said.
Read more »
US watchdog orders Goldman Sachs, Apple to pay $89 million over consumer failuresUS watchdog orders Goldman Sachs, Apple to pay $89 million over consumer failures
Read more »