The U.S. Consumer Financial Protection Bureau said Wednesday that corporate behemoths Apple (AAPL.O) and Goldman Sachs (GS.N), which both open new tabs, will pay $89 million for breaking consumer protection regulations in their combined credit card company.
According to the government, the two businesses mismanaged transaction disputes and deceived iPhone buyers about whether their purchases were indeed interest-free when they partnered to finance Apple consumers’ purchases using the Apple credit card.
According to the notification, Goldman Sachs will be subject to fines and consumer remedies in addition to limitations on its capacity to provide new credit cards. According to CFPB Director Rohit Chopra, hundreds of thousands of Apple Card customers were impacted by the misbehavior.
“This led to wrongful charges, mishandled disputes and damaged credit reports,” according to him, and “resulted in real harm to real people.” Goldman stated in a statement that it was happy the issue had been settled.
“We worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers,” added the statement.
A request for comment from Apple was not immediately answered. In December of last year, sources told Reuters that Goldman now risks an expensive departure from the Apple deal, which other lenders view as excessively risky and unprofitable.
Following the failure of its consumer banking venture, Goldman has returned its attention to its core competencies of trading and investment banking.
Billions of dollars have been lost by the consumer business that CEO David Solomon supported.
