Goldman Sachs and Apple Fined for Consumer Protection Violations

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Goldman Sachs and Apple have agreed to pay a combined fine of $89 million to settle allegations of consumer protection violations related to their joint credit card business. The U.S. Consumer Financial Protection Bureau (CFPB) found that the companies mishandled transaction disputes and misled customers about interest-free financing options.

Mishandled Disputes: The CFPB determined that Goldman Sachs failed to properly review and resolve consumer disputes, leading to delays in refunds and damage to credit histories.

Misleading Information: Apple and Goldman Sachs were accused of misleading customers about the availability of interest-free financing options for Apple devices. The companies allegedly steered customers towards interest-bearing purchases unless they were using the Safari browser in a specific way.

Financial Penalties: Goldman Sachs will pay a $45 million fine, while Apple will pay a $25 million fine. Additionally, Goldman Sachs will be required to pay $19.8 million in consumer redress.

Restrictions on Future Credit Card Issuance: Goldman Sachs will face restrictions on its ability to issue new credit cards until it submits a compliance plan to the CFPB.

The CFPB’s investigation revealed that the companies’ misconduct caused significant harm to consumers. Many customers faced delays in refunds, damage to their credit reports, and confusion regarding interest-free financing options.

The settlement serves as a reminder of the importance of compliance with consumer protection laws. It highlights the need for financial institutions to ensure that their products and services are transparent and fair to consumers.

The fines imposed on Goldman Sachs and Apple underscore the seriousness of the consumer protection violations committed by these companies. The settlement sends a clear message to the financial industry about the importance of adhering to consumer protection laws and providing fair and transparent services to customers.