Apple has been under the scrutiny of the US watchdogs for different reasons over the years. Now, a new problem seems to be knocking on the doors of the Cupertino tech giant. Yesterday, the U.S. Consumer Financial Protection Bureau (CFPB) ordered Apple and Goldman Sachs to pay a fine of $89 million over consumer failures.
Apple and Goldman Sachs fined over $89 million for consumer failure relating to Apple Card
The CFPB said mismanagement from both companies affected thousands of Apple Card users. The agency noted that Apple failed to send over tens of thousands of Apple Card disputes to Goldman Sachs. That’s not all, the CFPB also adds that “when Apple did send disputes to Goldman Sachs, the bank did not follow numerous federal requirements for investigating the disputes.”
The agency also says that Apple and Goldman Sachs prematurely launched the Apple Card despite “third-party warnings.” The third parties reportedly warned both entities that the dispute system wasn’t ready due to technological issues at launch. The US watchdog says this failure left customers with unresolved transaction disputes and incorrect credit reports in some cases.
The CFPB also stated that both companies misled customers regarding interest-free payment plans although there was no such thing. This resulted in Apple Card users paying interest for purchasing gadgets like the iPhone 16, iPhone 16 Pro, and more. The CFPB has ordered Apple to pay a fine of $25 million for consumer failures.
Whereas, Goldman Sachs received a fine of $45 million. In addition, the agency has banned Goldman Sachs from launching a new credit card. The agency adds that it won’t lift this ban “unless it (Goldman Sachs) can provide a credible plan that the product will actually comply with the law.” Additionally, the CFPB has also ordered Goldman Sachs to pay $20 million to the affected customers as compensation.
Apple and Goldman Sachs have responded right after the order was passed
Both Apple and Goldman Sachs have reportedly issued statements about the recent order from the CFPB. In a statement, an Apple spokesperson said “Apple Card is one of the most consumer-friendly credit cards available and was specifically designed to support users’ financial health. Upon learning about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address them and help impacted customers.”
On the other hand, Goldman Sachs expressed its satisfaction upon reaching a resolution with the agency in this matter. One of the company’s spokespersons said “We worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers.”
