The agency claims that both companies engaged in practices that harmed consumers, including mishandling disputed transactions and engaging in misleading marketing strategies.

According to the CFPB, Apple and Goldman Sachs owe a combined $89 million in penalties and redress to affected customers. The enforcement measures include a $45 million fine on Goldman Sachs and a $25 million fine on Apple. Additionally, Goldman Sachs is required to pay $20 million in compensation to consumers who were adversely impacted. The CFPB further stipulated that Goldman Sachs must present a "credible plan" to ensure future compliance before it can launch any new credit card products.

CFPB Director Rohit Chopra outlined the core issues in a prepared statement, emphasizing that the violations resulted in wrongful charges and damaged credit reports for many Apple Card users. He noted that the companies failed to process disputed transactions appropriately, leaving cardholders responsible for charges they did not make. Furthermore, consumers who expected interest-free financing for Apple device purchases were often improperly charged interest.

The federal agency identified violations under the Consumer Financial Protection Act and the Truth in Lending Act. The CFPB's investigation revealed that many of the problems originated from a hurried Apple Card launch, which failed to adequately address several operational and technological challenges, ultimately leading to consumer harm.

In response to the penalties, both Apple and Goldman Sachs defended their collaborative effort as consumer-friendly. Goldman Sachs spokesperson Nick Carcaterra stated that the company had diligently worked to resolve technological and operational issues since the card's launch and is satisfied with the resolution reached with the CFPB. An Apple spokesperson similarly expressed disagreement with the CFPB's characterization but emphasized that they have worked closely with Goldman Sachs to rectify the problems and improve customer experiences.

Amid these challenges, Apple is reportedly exploring partnerships with other banks to potentially take over its credit card program from Goldman Sachs, indicating a shift in its approach to consumer credit services.

This enforcement action underscores the significant responsibilities and risks associated with consumer financial products and highlights the critical importance of compliance with consumer protection laws.