Following an investigation, the Consumer Financial Protection Bureau (CFPB) today announced it has fined Apple and Goldman Sachs nearly $90 million combined for “Apple Card failures” related to “customer service breakdowns” and “misrepresentations.”
Apple and Goldman Sachs have partnered on the Apple Card since its launch in 2019, with Goldman Sachs handling the consumer lending aspects.
Specifically, the CFPB found that Apple and Goldman Sachs violated the U.S. Consumer Financial Protection Act and the U.S. Truth in Lending Act by mishandling transaction disputes and misleading iPhone users about interest-free payment options available when purchasing Apple devices with the Apple Card. These failures impacted “hundreds of thousands of Apple Card users,” according to the agency.
Apple has been ordered to pay a $25 million fine, which will go to the CFPB’s victims relief fund, while Goldman Sachs is required to pay at least $19.8 million in redress to impacted consumers and a $45 million fine.
In a statement shared with MacRumors, Apple said it “strongly disagree[s] with the CFPB’s characterization of Apple’s conduct.”
“Apple is committed to providing consumers with fair and transparent financial products,” an Apple spokesperson said. “Apple Card is one of the most consumer-friendly credit cards available, and was specifically designed to support users’ financial health. 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. We look forward to continuing to deliver a great experience for our Apple Card customers.”
This article, “Apple Responds After Being Fined Alongside Goldman Sachs for Alleged ‘Apple Card Failures’” first appeared on MacRumors.com
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Following an investigation, the Consumer Financial Protection Bureau (CFPB) today announced it has fined Apple and Goldman Sachs nearly $90 million combined for “Apple Card failures” related to “customer service breakdowns” and “misrepresentations.”
Apple and Goldman Sachs have partnered on the Apple Card since its launch in 2019, with Goldman Sachs handling the consumer lending aspects.
Specifically, the CFPB found that Apple and Goldman Sachs violated the U.S. Consumer Financial Protection Act and the U.S. Truth in Lending Act by mishandling transaction disputes and misleading iPhone users about interest-free payment options available when purchasing Apple devices with the Apple Card. These failures impacted “hundreds of thousands of Apple Card users,” according to the agency.
Apple has been ordered to pay a $25 million fine, which will go to the CFPB’s victims relief fund, while Goldman Sachs is required to pay at least $19.8 million in redress to impacted consumers and a $45 million fine.
In a statement shared with MacRumors, Apple said it “strongly disagree[s] with the CFPB’s characterization of Apple’s conduct.”
“Apple is committed to providing consumers with fair and transparent financial products,” an Apple spokesperson said. “Apple Card is one of the most consumer-friendly credit cards available, and was specifically designed to support users’ financial health. 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. We look forward to continuing to deliver a great experience for our Apple Card customers.”Tag: Apple CardThis article, “Apple Responds After Being Fined Alongside Goldman Sachs for Alleged ‘Apple Card Failures'” first appeared on MacRumors.comDiscuss this article in our forums Read More MacRumors: Mac News and Rumors – All Stories
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