On October 23, the Consumer Financial Protection Bureau (CFPB) announced that Apple Inc. and Goldman Sachs faced significant consequences for inadequate customer service regarding the Apple Card, which they launched together. The CFPB revealed that the companies misled hundreds of thousands of cardholders about transactions and card features. As a result, they are required to pay a hefty $89 million in fines and victim relief funds.

Under the CFPB’s order, Apple is mandated to contribute $25 million to the victim relief fund, while Goldman Sachs must pay nearly $20 million to victims along with a $45 million civil penalty. Furthermore, Goldman Sachs will only be allowed to offer new consumer credit cards if it can demonstrate compliance with legal obligations.

Launched in 2019, the Apple Card was intended to boost sales in Apple’s retail stores and establish Goldman Sachs as a key player in the consumer finance sector. However, by 2022, Goldman Sachs disclosed that the CFPB was investigating their handling of refunds and billing disputes.

Rohit Chopra, the CFPB director, stated, “Apple and Goldman illegally avoided their legal obligations to Apple Card borrowers; the actions of large tech companies and Wall Street firms should not appear to be exempt from federal laws.”

The CFPB claimed that Apple failed to send transaction dispute reports for tens of thousands of consumer accounts to Goldman Sachs. After Apple shared these reports, Goldman Sachs allegedly did not conduct investigations as federally required.

Additionally, the CFPB found that both companies misled consumers regarding Apple’s interest-free payment plan for Apple products. This deception led many customers to believe they were eligible for interest-free payments when using the Apple Card to purchase devices like iPhones. The bureau also noted that Goldman Sachs misled consumers on certain refund requests, resulting in unexpected interest charges.

In a statement, Apple strongly disagreed with the CFPB’s characterization of its actions, asserting, “Apple is committed to providing fair and transparent financial products for consumers. After becoming aware of these inadvertent issues years ago, we worked closely with Goldman Sachs to quickly resolve the problems and assist affected customers.”

Goldman Sachs echoed this sentiment, stating that “the Apple Card is one of the most consumer-friendly credit cards ever, and we are focused on addressing the technical and operational challenges encountered post-launch, alongside affected customers.” Both companies confirmed that they have reached a settlement with the CFPB.