As a member of the Extreme Investor Network, we strive to provide you with the latest information and insights into the world of finance. Today, we’re discussing the recent news that Apple and Goldman Sachs were ordered by the Consumer Financial Protection Bureau to pay over $89 million for mishandling consumer disputes related to Apple Card transactions.
The bureau found that Apple failed to send tens of thousands of consumer disputes to Goldman Sachs, and even when the bank did receive disputes, they did not follow federal requirements when investigating the cases. As a result, Goldman Sachs was ordered to pay a $45 million civil penalty and $19.8 million in redress, while Apple was fined $25 million. Additionally, Goldman Sachs is now banned from launching new credit cards unless they can provide an adequate plan to comply with the law.
This news serves as a reminder that even big tech companies and Wall Street firms are not exempt from federal law. It’s crucial for all financial institutions to follow regulations and handle consumer disputes appropriately.
The Apple Card was first launched in 2019 as a credit card alternative, in partnership with Goldman Sachs. Despite being marketed as simple and transparent, the CFPB found that consumers were misled about interest-free payment plans for Apple devices. Many customers thought they would have automatic interest-free monthly payments, but ended up being charged interest. This lack of communication led to some consumers paying additional interest charges and having incorrect credit reports.
Both Apple and Goldman Sachs have since worked to address the issues and are committed to providing a great experience for Apple Card customers. While they may disagree with the CFPB’s characterization of their conduct, they have reached an agreement and are dedicated to improving their services.
As an investor, it’s important to stay informed about the financial practices of companies you invest in. Understanding how they handle consumer disputes and comply with regulations can impact their reputation and ultimately, their success in the market.
Stay tuned to the Extreme Investor Network for more updates on finance and investing news that can help you make informed decisions for your portfolio.