Apple and Goldman Sachs have been ordered to pay over $89 million in penalties due to mishandling consumer disputes related to the Apple Card.

Penalties and Fines

The Consumer Financial Protection Bureau (CFPB) found that Apple did not forward consumer disputes to Goldman Sachs, and the bank failed to adhere to federal requirements during the investigation process.

As a result, Goldman Sachs has been hit with a $45 million civil penalty and an additional $19.8 million in redress for affected consumers, while Apple has been fined $25 million.

Ban on New Credit Cards

The CFPB has also imposed a ban on Goldman Sachs from launching new credit cards until it can demonstrate compliance with legal obligations.

Misleading Consumers

The regulatory body also highlighted that both companies misled consumers regarding interest-free payment plans for Apple devices purchased with the Apple Card, leading to unexpected financial burdens for some consumers.

Implications for Consumer Trust

The fallout from this ruling could have lasting implications for consumer trust in both Apple and Goldman Sachs, emphasizing the need for transparency and clear communication in financial products.

The CFPB's actions serve as a warning to both technology firms and traditional financial institutions about the importance of compliance with federal regulations.