Apple and Goldman Sachs were ordered to pay $89 million by the US Consumer Financial Protection Bureau (CFPB) for problems with their Apple Card partnership. Goldman Sachs was also temporarily banned from issuing new credit cards due to abusive customer fee disputes and inaccuracies in credit reports.
According to the CFPB, Apple failed to forward tens of thousands of disputes over fees charged to Goldman Sachs. When the disputes were discovered, the bank did not comply with several federal regulations related to its investigation process.

The CFPB noted that the companies launched their credit card programs too soon, despite warnings from third parties about inadequacies in their dispute resolution system due to technical problems. As a result of these failures, consumers suffered long delays in receiving refunds for disputed charges and some had inaccurate negative information added to their credit reports, the CFPB said.

The CFPB also found that the companies misled customers about interest-free payment options for Apple products, such as the iPhone. While Apple announced that the card had no fees (such as annual fees, over-the-limit fees, late fees and foreign transaction fees), purchases are not exempt from interest.
An Apple representative said that the company strongly disagrees with the description of the Consumer Financial Protection Bureau (CFPB) of its actions, but is still cooperating with the agency’s order.

“Apple Card is one of the most consumer-friendly credit cards on the market and is specifically designed to improve the financial well-being of users,” said the representative. “When we became aware of these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly resolve and help affected customers.”

Goldman Sachs said it was pleased to have reached an agreement with the CFPB regarding the matter.
“We have been working hard to address several technological and operational challenges that have arisen since launch and have already addressed them with affected clients,” said a Goldman Sachs spokesperson.
Goldman Sachs was fined $45 million and must pay clients $20 million in restitution. Apple was fined $25 million.

In addition, the CFPB prevented Goldman Sachs from introducing a new credit card until it could present a credible plan showing compliance with the law. In a 2022 SEC filing, the bank disclosed that the CFPB was investigating its practices related to “credit card account management,” including how it handled chargebacks and billing disputes.
The end adds to the challenges facing Goldman’s consumer credit division, which also this year ended its credit card partnership with General Motors, now replaced by Barclays.

The Apple Card, launched by Goldman Sachs and operating on the Mastercard network, debuted in August 2019. By the end of September of that year, Goldman had already issued about $10 billion in loans, with customers holding $736 million in loan balances.
Goldman Sachs entered the consumer retail market after launching its online brand Marcus in 2016, which offered unsecured personal loans, including options for individuals managing credit card debt.