The Consumer Financial Protection Bureau, CFPB, announced today it’s fining Apple Inc. and Goldman Sachs $89 million over practices involving the Apple Card.
CFPB says hundreds of thousands of Apple Card users were affected when the two companies “illegally mishandled transaction disputes and misled iPhone purchasers about interest-free payment options.” Apple has now been charged a $25 million fine in civil penalties, while Goldman Sachs will pay $45 million. The other $19.8 million will go toward refunds to customers.
The Apple Card was introduced in 2019 in partnership with Goldman Sachs. Used through the Apple Wallet app on users’ iPhones, it could be used as a credit card to pay for products within Apple’s ecosystem. According to Apple in 2024, there were 12 million Apple Card users in the U.S. CFPB states neither Apple nor Goldman Sachs were experienced in consumer lending, which led to various failures.
Apple reportedly didn’t send “tens of thousands” of transaction disputes to Goldman Sachs, and the latter didn’t deal with inquiries within the timeframe designated by U.S. federal law. “These failures meant that consumers faced long waits to get money back for disputed charges, and some had incorrect negative information added to their credit reports,” said CFPB.
The bureau also said both companies misled consumers regarding interest-free payment plans for Apple devices. Card users believed they were getting interest-free monthly payments when buying the devices and were shocked to discover they were indeed charged interest. Apple also failed to show these interest-free payment options on its website when using certain browsers. Goldman Sachs is also accused of misleading consumers, which led to some paying additional interest charges.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” said CFPB Director Rohit Chopra. “Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law. The CFPB is banning Goldman Sachs from offering a new consumer credit card unless it can demonstrate that it can actually follow the law.”
Apple has responded to the fine with a message sent to MacRumors, stating that these issues were from “years ago” and that the company subsequently “worked closely with Goldman Sachs to quickly address them and help impacted customers.” It added, “While we strongly disagree with the CFPB’s characterization of Apple’s conduct, we have aligned with them on an agreement.”