The many disputed transactions and wave of misleading information on the Apple Card service now see justice following the conclusion of an investigation by the Consumer Financial Protection Bureau (CFPB). The bureau decided to give Apple and Goldman Sachs a substantial fine of $89 million for their actions and practices that have led to many users suffering from the experience.
This comes alongside the shaky relationship between Apple and Goldman Sachs where the latter asked for an exit from their partnership and previous agreements and is now looking for a suitable replacement to fulfill their part in this service.
Apple Card Disputed Transactions, Misleading Info Lead to Massive Fines
The CFPB announced in its latest news release that it is now fining Apple and Goldman Sachs for their bad practices in their Apple Card service, with both required to pay over $89 million combined for their "failures." The bureau broke down what the fine constitutes for both companies, with Apple facing a $25 million civil money penalty, and Goldman Sachs given a $19.8 million fine in redress and a $45 million civil money penalty.
One of the biggest issues against the Apple Card service was visited by this investigation by the CFPB, and it found that Apple failed to send "tens of thousands" of disputes to Goldman, and the Big Bank, on the other hand, did not follow federal requirements in addressing them.
It was also revealed that Apple and Goldman Sachs launched the Apple Card despite not having a fully working disputes system, which third-party reviewers initially warned about.
Apple and Goldman Sachs to Pay for Their Apple Card Practices
Alongside this, Apple Card also misled customers on the information behind their interest-free payment plans using the fintech service to purchase Apple devices, later finding out that they charged interest from these transactions. Moreover, Goldman Sachs also charged users additional interest fees despite them being misled about refund applications.
The fines to be paid by Apple and Goldman Sachs are also seeing further penalties, as Goldman Sachs is prohibited from launching a new credit card until they comply with the imposed fines and requirements.
Apple and Goldman Sachs: The Future of the Apple Card
The fintech solution delivered by Apple and Goldman Sachs to the U.S. is one of the most popular credit card services available in the country, focusing on its integration into the Apple Pay experience, exclusive to its users. It has seen its fair share of errors and issues in its over five years of operations since 2019, but it nevertheless remains one of the top fintech programs from the Big Tech.
Last year's massive development behind the Apple Card saw the falling out between Apple and Goldman Sachs, as both were looking for an exit from their contracts and partnerships for the service. Goldman Sachs handles the finance side of things, and the big bank revealed that it has seen massive losses rather than profit with its operations with Apple for the credit card and high-yield savings offers.
For now, Apple and Goldman Sachs are looking for a suitable replacement that will fulfill their side of the service to help the Cupertino giant continue its fintech program, with American Express being its top candidate to replace Goldman Sachs. There is still no word regarding the upcoming changes to the service, but Apple and Goldman are now sharing an $89 million fine, which may require both companies to stay partners for longer.
