On October 23, the Consumer Financial Protection Bureau (CFPB) announced that Apple and Goldman Sachs, in their partnership to launch the Apple Card, failed to provide adequate customer service to hundreds of thousands of cardholders. This negligence included misrepresentations regarding transactions and card features. As a result, both companies are required to pay a total of $89 million in fines and to establish a victim relief fund.

The order specifies that Apple must contribute $25 million to the CFPB’s victim relief fund, while Goldman Sachs will pay nearly $20 million to victims, along with a $45 million civil penalty. Goldman Sachs will only be permitted to offer new consumer credit cards if it can demonstrate compliance with federal laws.

Apple and Goldman Sachs introduced the Apple Card in 2019, aiming to boost Apple’s retail sales and position Goldman Sachs as a significant player in the consumer finance market. In 2022, Goldman Sachs revealed that the CFPB was investigating its practices related to refunds and billing disputes.

Rohit Chopra, the director of the CFPB, stated, “Apple and Goldman Sachs unlawfully circumvented their legal obligations to borrowers of the Apple Card. The actions of large tech companies and Wall Street firms should not suggest they operate outside of federal law.”

The CFPB claims that Apple neglected to forward transaction disputes from tens of thousands of consumers to Goldman Sachs. After Apple shared these reports, Goldman Sachs failed to conduct investigations as required by federal regulations.

Additionally, the CFPB found that both companies misled consumers about interest-free payment plans for Apple products, leading customers to believe they qualified for such options when purchasing devices like the iPhone with the Apple Card. Goldman Sachs also misled consumers regarding certain refund requests, resulting in unexpected interest charges.

In response, Apple issued a statement strongly disagreeing with the CFPB’s characterization of its actions, asserting that it is committed to providing fair and transparent financial products. Apple stated that upon discovering these inadvertent issues years ago, it collaborated closely with Goldman Sachs to address them promptly and assist affected customers. Goldman Sachs echoed this sentiment, claiming that the Apple Card is one of the most consumer-friendly credit cards available and that they are dedicated to resolving the technical and operational challenges encountered since its launch. Both companies confirmed that they have reached a settlement with the CFPB.