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Goldman Sachs and Apple Penalized $89.8 Million by CFPB over Apple Card Disputes

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Goldman Sachs, Apple, CFPB, Civil Penalty

Business Honor
24 October, 2024

Regulatory oversight addresses transaction dispute failures in the Apple Card program for consumers.

The Consumer Financial Protection Bureau has directed that Goldman Sachs and Apple pay $89.8 million together because the agency was concerned about the issues it had regarding their Apple Card program. The CFPB said it had found thousands of disputes filed by consumers regarding their Apple Card transactions. Apple failed to quickly communicate such disputes from its side to Goldman Sachs. The bank also failed to research most of the disputes that it received and this led to delays in the refund and even incorrect information about credit for some users.

Settlement of the Case The settlement requires Goldman Sachs to provide consumer redress of at least $19.8 million, and the company will face a civil penalty of $45 million. Apple will contribute to the civil penalty of $25 million. For Goldman Sachs, the CFPB also imposed other restrictions, including not launching any new credit card products until it could demonstrate its compliance with federal regulations.

This governing highlights the fact that consumer lending should be facilitated with proper communication and operational compliance. Both firms have reassured everyone that it is in their best interest to ensure that the problems noticed are handled amicably and that there is better service that can offer to its customers. Apple Card was available in August of 2019, boasting new financing opportunities for Apple customers.

This is a development that makes way for even more stringent oversight of the regulatory environment over financial products offered by technology firms and makes it more significant to implement consumer protection laws.