Apple and Goldman Sachs ordered to pay $89 million over Apple Card failures

Source: NPR

October 23, 2024 4:26 PM ET



When Apple announced it was launching Apple Card in 2019, it promised “a new kind of credit card” that was “designed to help customers lead a healthier financial life.” Now, government regulators say Apple and its partner Goldman Sachs caused harm to hundreds of thousands of cardholders by mishandling disputed transactions and by using deceptive marketing practices.

The Consumer Financial Protection Bureau, a federal agency, has ordered the companies to pay a combined $89 million in penalties and redress to those affected. The CFPB has also banned Goldman Sachs from launching a new credit card unless it provides “a credible plan” that the product will comply with the law.

“The companies violated consumer financial protection laws through their practices related to Apple Card,” said CFPB Director Rohit Chopra in prepared remarks on Wednesday. “This led to wrongful charges, mishandled disputes, and damaged credit reports.”

The CFPB says the companies harmed consumers by failing to process disputed transactions, meaning cardholders were unfairly held responsible for the charges.

Read more: https://www.npr.org/2024/10/23/g-s1-29566/apple-goldman-sachs-fine-apple-card-cfpb