Apple, Goldman Sachs face penalties over Apple Card customer complaints
Apple and Goldman Sachs penalised over interest-free payment plan misrepresentations and mishandling of Apple Card user complaints.
The United States has fined Apple and Goldman Sachs $89 million for allegedly misleading customers of their co-branded Apple Card and mishandling customer service. The Consumer Financial Protection Bureau (CFPB) accused both companies of failing to address user complaints properly and causing confusion over interest-free payment plans, impacting hundreds of thousands of Apple Card holders since its launch in 2019.
According to the CFPB, Apple did not forward thousands of customer disputes to Goldman Sachs, who also failed to follow federal guidelines in investigating the claims. Furthermore, the companies were found to have misled customers into believing that purchases of Apple products made with the Apple Card would qualify for automatic interest-free payments, resulting in unexpected charges for many.
CFPB Director Rohit Chopra stated that big tech and Wall Street firms are not exempt from federal laws, banning Goldman Sachs from issuing new consumer credit cards until it complies with regulatory standards. The bureau also criticised both companies for launching the Apple Card despite early technological issues, which led to delayed refunds and even damaged some users’ credit scores.
In response, Goldman Sachs and Apple said they had worked to address the issues, while Apple disputed the CFPB’s interpretation of events. Goldman Sachs has been ordered to pay $19.8 million in compensation and a $45 million fine, with Apple receiving a $25 million penalty.