Apple and Goldman Sachs must pay more than $89 million for failures linked to their shared Apple Cardfederal financial regulators announced Wednesday.
The Consumer Financial Protection Bureau (CFPB) said the companies provided inadequate customer service and misrepresented card transactions and features to hundreds of thousands of Apple Card users.
“Apple and Goldman Sachs unlawfully circumvented their legal obligations to Apple Card borrowers,” CFPB Director Rohit Chopra said in a statement. “Big tech companies and major Wall Street companies should not behave as if they are exempt from federal law.”
The CFPB alleges that Apple failed to send tens of thousands of consumer disputes about transactions in their accounts to Goldman Sachs. When the technology company shared those reports with the investment bank, Goldman Sachs failed to comply with federal investigative requirements, regulators said.
Both companies also misled consumers about interest-free payment plans for Apple devices, the CFPB found. This leads customers to believe they would qualify for an interest-free payment if they used an Apple Card to purchase iPhones and other Apple devices, according to the agency.
Additionally, Goldman Sachs misled consumers about the application of certain refunds, causing them to pay additional interest charges, the CFPB said.
In a statement to CBS MoneyWatch, Apple disputed the CFPB’s assessment of its conduct, while saying it was “committed to providing consumers with fair and transparent financial products.”
“After becoming aware of these unintended issues years ago, Apple worked closely with Goldman Sachs to quickly resolve them and assist affected customers,” the company added. “While we strongly disagree with the CFPB’s characterization of Apple’s behavior, we have aligned with them on a settlement. We look forward to continuing to deliver an exceptional experience for our Apple Card customers.”
Goldman Sachs did not immediately respond to a request for comment.
The order requires Apple to pay $25 million to the CFPB’s victim relief fund. Goldman Sachs must pay victims nearly $20 million, plus a civil penalty of $45 million, according to the agency’s order.
Chopra also said she was prohibiting Goldman from offering another consumer credit card “unless it can demonstrate that it can actually comply with the law.”
