In a recent development, Apple Card users are set to receive a substantial payout following a settlement between tech giant Apple, Goldman Sachs, and a U.S. regulatory body. The Consumer Financial Protection Bureau (CFPB) has mandated that at least $19.8 million be distributed to affected customers due to alleged mishandling of transaction disputes and misleading practices.
The CFPB accused both Apple and Goldman Sachs of failing to properly manage customer complaints related to the Apple Card. According to the agency, Apple neglected to forward numerous reported issues to Goldman Sachs, while the bank fell short of federal requirements in investigating these disputes.
These oversights led to significant consequences for consumers. Many experienced extended delays in receiving refunds for disputed charges, and some even had inaccurate negative information added to their credit reports. The CFPB also pointed out that both companies provided misleading information about interest-free payment plans for Apple device purchases.
Customers were led to believe that they would automatically qualify for interest-free monthly payments when using their Apple Card. However, in reality, many were charged interest. Adding to the confusion, the interest-free payment option was sometimes not visible on Apple's website when accessed through certain browsers.
Goldman Sachs was also found to have misrepresented how refunds would be applied, resulting in additional interest charges for some customers.
As part of the settlement, Goldman Sachs will pay the $19.8 million in restitution to affected customers, along with a $45 million civil penalty. Apple is not exempt from penalties either, as they are required to pay a $25 million civil penalty.
Looking ahead, the CFPB has stated its intention to closely monitor Goldman Sachs in any future credit card initiatives to prevent similar issues from arising.
This settlement serves as a reminder of the importance of transparency and proper handling of customer disputes in the financial services sector, especially when big tech companies partner with traditional financial institutions.