US regulators have announced that Goldman Sachs has reached a settlement agreement with Apple and will be sending nearly $20,000,000 to Apple’s customers.
Consumer Financial Protection Bureau says Goldman Sachs, Apple and other Wall Street banks “illegally handled transaction disputes”. Apple is accused of not reporting a large number of issues reported by Apple Card holders to Wall Street’s banking giant.
Goldman failed to comply with federal regulations for investigating complaints when Apple sent them to Goldman.
The CFPB also claims that Apple and Goldman Sachs misled customers about interest-free payments plans when purchasing devices.
Many customers believed they could get automatic interest-free payments if they bought Apple products with an Apple Card. They were instead charged interest.
Apple’s website did not always show interest-free payments on some browsers. Goldman Sachs misled customers about refunds and led them to pay additional interest fees .”
Apple Card was launched by Goldman Sachs in August 2019 as a payment system with Mastercard.
Goldman Sachs is ordered by the CFPB to pay at minimum $19.8 Million in redress for affected customers, and a civil money penalty of $45,000,000. Apple is to pay a civil money penalty of $25 million.
In order to prevent a repetition of this offense, the US Government agency has said it will “closely monitor” Goldman Sachs should they launch other credit cards.
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