Apple was found to have failed to transmit ‘tens of thousands’ of disputed transactions, according to the Consumer Financial Protection Bureau.
Both Apple and Goldman Sachs are in a difficult situation as a result of the Apple Card. The Consumer Financial Protection Bureau (CFPB) announced in a press release that it will be fining the two corporations a total of $89 million for fraudulent acts regarding the Apple Card. The Verge was the first to discover this news release.
“Tens of thousands” of challenged card transactions were not sent to Goldman Sachs, according to the Consumer Financial Protection Bureau (CFPB). According to the announcement made by the Consumer Financial Protection Bureau (CFPB), Goldman Sachs did not successfully comply with “numerous federal requirements for investigating the disputes” when it ultimately forwarded the transactions to the investment bank.
Additionally, Apple and Goldman are accused of providing customers with false information regarding the Apple Card. Although several customers anticipated that they could use their credit card to make interest-free payments in order to purchase an Apple product, they were surprised to find that interest charges were still reflected on their bills “because they were not automatically enrolled as were expected.”
Another accusation leveled against Apple is that it does not provide a payment option that does not incur interest on its website if the client is not using the Safari web browser. In addition, the Consumer Financial Protection Bureau asserts that Goldman Sachs misled customers regarding the administration of some refunds that resulted in increased interest costs.
Goldman Sachs has been ordered by the Consumer Financial Protection Bureau (CFPB) to pay a civil money penalty of $45 million and remedial monies exceeding $19.8 million. In addition, prior to the introduction of every new credit card product, the corporation is expected to show a “credible plan” to remain in compliance with the regulations. Additionally, Apple was subjected to a civil money penalty of $25 million, which will be contributed to the victims relief fund of the Consumer Financial Protection Bureau.
With the introduction of the Apple Card in 2019, Apple and Goldman Sachs promoted it as a device that might “assist customers in leading a healthier financial life.” In an article that was published in the Wall Street Journal four years later, it was stated that Goldman Sachs was beginning to have reservations about the consumer loan market and believed that the initiative might have been an error.