Key Takeaways
- Apple and Goldman Sachs have been charged with $89 million in fines.
- The Consumer Financial Protection Bureau (CFPB) is the one that has levied the penalties.
- The corporations illegally handled transaction disputes improperly, which contributed to the problem.
A $25 million civil penalty against Apple has been mandated to be paid to the CFPB’s victims relief fund.
The Consumer Financial Protection Bureau (CFPB) has fined Apple and Goldman Sachs a total of $89 million. According to a Verge investigation, the problem started when the firms improperly handled transaction complaints and deceived iPhone consumers about interest-free Apple Card payment choices.
According to the CFPB, hundreds of thousands of Apple Card users have been impacted by this exact problem. The Cupertino corporation neglected to forward “tens of thousands” of Apple Card transaction disputes to Goldman Sachs, the CFPB continues. According to federal legislation, Goldman Sachs is also accused of not finishing prompt investigations into the claims it received.
The investigation claims that when cardholders used the Apple Card to buy Apple-made items, they were misled that they would immediately receive interest-free financing. However, because they were not enrolled as required, many were unintentionally charged interest. Additionally, the Consumer Financial Protection Bureau (CFPB) pointed out that Apple only offered interest-free financing to online buyers in Safari.
Consequently, Apple was mandated to contribute $25 million to the CFPB’s victims relief fund as a civil penalty. Before launching any more credit card products, Goldman Sachs will have to provide a credible compliance strategy, pay a minimum of $19.8 million in restitution, and pay a $45 million civil penalty.
According to reports, Apple has attempted to sever ties with Goldman Sachs and is seeking to collaborate with JPMorgan on the Apple Card.
