Goldman Sachs and Apple fined $89 million for Card mishandling

In October 2024, the U.S. Consumer Financial Protection Bureau (CFPB) ordered Apple and Goldman Sachs to pay $89 million because of their mishandling of the Apple Card service. The financial institutions failed to adequately manage charge disputes, leaving customers without resolutions for issues related to their accounts. In some scenarios, customers even experienced incorrect information reported on their credit reports, which could impact their financial standing. The CFPB reported that Apple neglected to inform Goldman Sachs of tens of thousands of disputes over a considerable timeframe. Additionally, when disputes were communicated, Goldman Sachs did not adhere to federal requirements for their evaluation. The situation was exacerbated by warnings from third-party experts prior to the card's launch, highlighting that the technology to support such a card was not functioning properly. As a result of these systemic issues, the CFPB determined that consumers experienced long waiting periods for refunds on disputed charges, and some had incorrect negative entries in their credit reports. The agency also found that customers were misled about the card’s supposed interest-free payment plans. To address the failures, Goldman Sachs was fined $45 million, instructed to compensate customers with $20 million, and temporarily barred from launching any new credit cards without a credible compliance plan. Both companies have since stated they are cooperating with regulators and correcting the identified shortcomings.