Apple and Goldman Sachs fined $89 million for defrauding Apple Card holders

According to the CFPB, the companies improperly handled customer complaints and misled customers by advertising the ability to purchase “relatively interest-free payment plans” for Apple devices.

Apple Card is a credit card created by Apple in collaboration with Goldman Sachs. It was launched in 2019 and is aimed at iPhone users. The card is integrated with the Apple Wallet app, allowing you to track spending, receive refunds, and manage your finances.

As the office noted, Apple failed to send “tens of thousands” of customer complaints to Goldman Sachs, and the bank did not review them in a timely manner, as required by law. Additionally, Apple Card holders were promised interest-free loans when purchasing Apple devices, but in practice, many of them faced interest because they were not automatically connected to the program.

Under the CFPB order, Apple will pay $25 million as a “civil penalty,” and Goldman Sachs must return at least $19.8 million to customers and pay a $45 million fine. The bank is also prohibited from issuing new credit products until it agrees. with the regulator on a plan to implement the requirements of the law.

Goldman Sachs spokesperson Nick Carcaterra told The Verge that the bank has been proactive in resolving technical and operational issues that have arisen since the launch of Apple Card and is pleased with the agreement reached with the bureau. Apple told MacRumors that the company was working closely with Goldman Sachs to quickly resolve the issues. He added that the company does not agree with the CFPB’s conclusions, despite the agreement reached.

• At the end of August, the Central Bank revoked the license of Goldman Sachs Bank LLC (owned by Goldman Sachs) to conduct brokerage activities in Russia.