The United States imposed a fine of $89 million on Apple and Goldman Sachs on Wednesday, alleging that they misled users regarding the credit card offered by the iPhone manufacturer.
The Consumer Financial Protection Bureau (CFPB) reports that hundreds of thousands of users of the Apple Card, launched in collaboration with a major US bank in 2019, have experienced problems with customer service and inaccuracies.
Apple did not transmit tens of thousands of customer disputes regarding credit card transactions to Goldman Sachs, and when it eventually did, the bank failed to adhere to federal standards for investigating these claims, according to the bureau.
The bureau reported that Apple and Goldman Sachs provided misleading information to buyers regarding the automatic availability of interest-free payment plans when purchasing Apple devices with the card, leading to unexpected debt payments for consumers.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” CFPB Director Rohit Chopra said in a release.
“Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law.”
Chopra added that the bureau is banning Goldman Sachs from offering a new consumer credit card unless it can show it will follow the law.
The CFPB criticized Apple and Goldman for launching Apple Card “despite third-party warnings to Goldman that the Apple Card disputes system was not ready due to technological issues.”
As a result, Apple Card customers faced long waits for refunds and some saw their credit scores suffer, according to the bureau.
“We worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers,” a Goldman Sachs spokesperson said in response to an AFP inquiry.
An Apple spokesperson told AFP that “upon learning about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address them and help impacted customers.”
“While we strongly disagree with the CFPB’s characterization of Apple’s conduct, we have aligned with them on an agreement.”
The CFPB ordered Goldman Sachs to pay at least $19.8 million in compensation and a $45 million fine, while Apple was hit with a $25 million fine.
