The recently announced $89 million fine from the Consumer Financial Protection Bureau has put Apple and Goldman Sachs in a difficult situation regarding their Apple Card partnership. The CFPB revealed that Apple failed to forward disputed card transactions to Goldman Sachs promptly, leading to non-compliance with federal requirements for investigating disputes once they were received. Additionally, customers were allegedly misled about the interest-free payment option for purchasing Apple products and faced unexpected interest charges on their bills. Apple is also accused of restricting the interest-free payment option to Safari users and Goldman Sachs is said to have misled customers about refund application procedures. As a result, Goldman Sachs has been ordered to pay $19.8 million in redress funds and $45 million in civil penalties, along with the requirement to outline a compliance plan for future credit card products. Apple faces a $25 million civil penalty and both companies are under scrutiny after doubts were raised about the success of the Apple Card venture. Introduced in 2019 as a tool to improve financial health, the Apple Card has now come under fire for various alleged misleading practices.
