Starting in 2019, Apple partnered with Goldman Sachs to create its own credit cardApple CardHowever, on October 23, 2024, the U.S. Consumer Financial Protection Bureau (CFPB) sued Apple and Goldman Sachs for a total of 8,900 yen for inappropriate business practices related to their credit card business. It was announced that a fine of 10,000 dollars (approximately 13.6 billion yen) has been imposed.
CFPB Orders Apple and Goldman Sachs to Pay Over $89 Million for Apple Card Failures | Consumer Financial Protection Bureau
https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-apple-and-goldman-sachs-to-pay-over-89-million-for-apple-card-failures/
Apple and Goldman Sachs found millions for misleading Apple Card holders – The Verge
https://www.theverge.com/2024/10/23/24277710/apple-goldman-sachs-cfpb-fine-charge-disputes-system
Apple and Goldman Sachs ordered to pay $89 million after Apple Card failures | CNN Business
https://edition.cnn.com/2024/10/23/business/goldman-sachs-apple-card-fine/index.html
According to the CFPB, Apple failed to inform Goldman Sachs of the existence of tens of thousands of disputes filed by consumers regarding Apple Card transactions. Goldman Sachs was also cited for failing to follow numerous federal laws governing consumer dispute investigations. As a result, Goldman Sachs allegedly placed unfavorable information on consumers’ credit reports, making cardholders liable for fraudulent or potentially unauthorized purchases.
In addition, starting in December 2019, Apple will allow users who use Apple Card to purchase Apple products.Interest-free installment serviceWe offer However, the CFPB points out that Apple and Goldman Sachs are misleading consumers about the interest-free installment payment service when purchasing Apple products with Apple Card.
Many consumers thought that when they purchase an Apple product with Apple Card, they can automatically pay in interest-free installments, but in reality, the interest-free installment service is optional when purchasing an Apple product and is automatically enrolled. It was not something that would be done. As a result, interest will be charged to consumers who purchase Apple products in installments. The CFPB also criticized that “Apple displayed plans only to users using Safari when registering for interest-free installment services, and faced the problem of complicated registration procedures.”
Due to these issues, the CFPB has imposed a civil penalty of $25 million (approximately 3.8 billion yen) on Apple. In addition, Goldman Sachs was not only fined $19.8 million (approximately 3 billion yen) in damages and a civil penalty of $45 million (approximately 6.8 billion yen), but also “actually complied with the law”. The issuance of new credit card products is prohibited until a reliable plan is issued to ensure that the product is a reliable product.
In response to this decision, an Apple spokesperson said, “While we accept the CFPB’s order, we disagree with the CFPB’s assertions.” “Apple Card is the most consumer-friendly credit card ever offered.” “Apple has been aware of this issue for several years and has been working closely with Goldman Sachs to take swift action and assist affected customers.” states.
“We are working diligently to address the specific technical and operational challenges that have arisen since the release of Apple Card,” said Nick Calcaterra, vice president of communications at Goldman Sachs. “We have already addressed the affected customers,” he said. “We are pleased to have reached an agreement with the CFPB to resolve this matter.”
Regarding Apple and Goldman Sachs,High-yield savings account service for Apple Card usersDue to deteriorating business performance, there are reports that the partnership between the two companies may be terminated and JP Morgan may take over the business.
Apple may end its partnership with Goldman Sachs, leaving the future of Apple Card uncertain – GIGAZINE
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