Apple and Goldman Sachs fined millions for misleading Apple Card holders

The Consumer Financial Protection Bureau (CFPB) has announced fines totaling $89 million against Apple and Goldman Sachs because the Apple Card companies “unlawfully mishandled transaction disputes and misled iPhone buyers about interest-free payment options.” “. According to the CFPB, the problems affected “hundreds of thousands of Apple Card users.”

According to the CFPB, Apple did not refer “tens of thousands” of disputes over Apple Card transactions to Goldman Sachs. The CFPB says Goldman Sachs also failed to conduct timely investigations into disputes it received in accordance with federal law.

Cardholders were also led to believe they would automatically receive interest-free financing when they purchased Apple devices with Apple Card, but “many cardholders were unknowingly charged interest because they were not automatically enrolled as expected,” the CFPB says. The CFPB adds that Apple only showed the interest-free financing option in Safari for online shoppers.

According to the CFPB, Apple must pay a civil penalty of $25 million, which will go to the CFPB's Victim Assistance Fund. Goldman Sachs must pay “at least” $19.8 million in restitution and a $45 million civil penalty and cannot launch a future credit card product until it has submitted to the CFPB “a credible plan for how the product will comply with the law.” will be compatible”.

“Apple Card is one of the most consumer-friendly credit cards ever offered,” Nick Carcaterra of Goldman Sachs said in a statement The edge. “We have worked diligently to address certain technological and operational challenges we faced post-launch and have already addressed them with affected customers. We are pleased to have found a solution with the CFPB and are proud to have worked with Apple to develop such an innovative and award-winning product.”

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