### CFPB Takes Action Against Apple and Goldman Sachs for Apple Card Mismanagement

In a decisive move, the Consumer Financial Protection Bureau (CFPB) has stepped in to address significant customer service failures and misleading practices tied to the Apple Card. The CFPB's investigation uncovered that both Apple and Goldman Sachs mishandled consumer disputes and misled Apple Card users about interest-free payment options for Apple devices.

According to the CFPB, Apple overlooked tens of thousands of transaction disputes from Apple Card users and failed to forward them to Goldman Sachs. Even when disputes were forwarded, Goldman Sachs did not comply with federal investigation requirements. This led to long delays in resolving disputed charges, with some consumers receiving incorrect negative credit report entries as a result. Despite warnings ahead of its launch in August 2019, Apple and Goldman Sachs pushed forward with the Apple Card, overlooking significant technical issues flagged by third parties.

In response to these findings, the CFPB has ordered Goldman Sachs to pay at least $19.8 million in redress to affected consumers and a $45 million civil money penalty. Additionally, Apple must pay a $25 million civil money penalty. To further ensure compliance, Goldman Sachs is prohibited from launching any new credit cards unless it can demonstrate a credible plan for adhering to federal laws.

The investigation also revealed deceptive practices concerning the Apple Card Monthly Installments plan, introduced in December 2019. Many consumers believed they were automatically enrolled in interest-free payment plans when purchasing Apple devices. However, this was not always the case, resulting in unexpected interest charges. Furthermore, these interest-free plans were sometimes only visible to users of Apple's Safari browser, leading to widespread confusion.

Another issue highlighted was Goldman Sachs's mismanagement of refunds. More than 10,000 cardholders were misled about how refunds would be applied, resulting in unanticipated interest charges. These actions were found to be in violation of the Consumer Financial Protection Act and the Truth in Lending Act.

The CFPB's latest requirements stipulate that any future credit card launches by Goldman Sachs must be rigorously planned to ensure compliance with the law. The Bureau stresses that tech and finance giants must adhere to federal regulations just like any other entity, ensuring fair and transparent practices for consumers.