The US Consumer Financial Protection Bureau (CFPB) has ordered the payment of $89 million in fines to Apple and Goldman Sachs.
This fine was imposed after an investigation found that these two companies were involved in consumer fraud related to the Apple Card, a credit card introduced through collaboration in 2019.
According to the CFPB, Apple and Goldman Sachs failed to properly handle consumer complaints, as well as lied about automatic interest-free payment plans for Apple device purchases.
The investigation found that tens of thousands of consumer complaints were allegedly not sent to Goldman Sachs, and when complaints were received, the bank did not comply with federal investigation requirements.
This has resulted in affected customers facing delayed repayments, and some even experiencing a deterioration in their credit scores.
The director of the CFPB, Rohit Chopra, stated that Apple and Goldman Sachs have avoided taking responsibility for their actions to Apple Card borrowers.
He also warned big tech companies and Wall Street firms not to behave as if they were exempt from federal law.
The CFPB has ordered Goldman Sachs to pay $19.8 million in restitution to consumers, in addition to a $45 million civil penalty.
Meanwhile, Apple was fined $25 million.
The CFPB also criticized the rollout of the Apple Card which went ahead despite warnings of unresolved technical problems that could affect the complaint system.
Some Apple Card holders are charged interest on purchases, despite the promise of an interest-free payment plan.
This problem arises due to lack of clear communication from the bank about how repayment works, thus making many users incur large interest payments without realizing it.
The incident also sparked speculation about the future collaboration between Apple and Goldman Sachs, with some reports suggesting that JPMorgan Chase may become the new Apple Card partner, following a rift between Apple and Goldman Sachs that dates back to 2023.
