Governance
Goldman Sachs and Apple face $89M penalty
What happened CFPB has ordered Apple and Goldman Sachs to pay over $89 million in combination over the violation of the consumer protection law for Apple Card transaction dispute. The CFPB is ordering Goldman Sachs to pay at least $19.8 million in redress and a $45 million civil money penalty, and A…
Headline
What happened CFPB has ordered Apple and Goldman Sachs to pay over $89 million in combination over the violation of the consumer protection law for Apple Card transaction dispute. The CFPB is ordering Goldman Sachs to pay at least $19.8 million in redress and a $45 million civil…
Context
CFPB has ordered Apple and Goldman Sachs to pay over $89 million in combination over the violation of the consumer protection law for Apple Card transaction dispute. The CFPB is ordering Goldman Sachs to pay at least $19.8 million in redress and a $45 million civil money penalty, and Apple to pay a $25 million civil money penalty. The CFPB is also banning Goldman Sachs from launching a new credit card unless it can provide a credible plan that the product will actually comply with the law.
Evidence
Pending intelligence enrichment.
Analysis
The CFPB also found that Apple and Goldman Sachs misled consumers about interest-free payment plans for Apple devices. Many customers thought they would automatically get interest-free monthly payments when buying Apple devices with their Apple Card. Instead, they were charged interest. In some cases, Apple did not even show the interest-free payment option on its website on certain browsers. Goldman Sachs also misled consumers about the application of some refunds, which led to consumers paying additional interest charges. Information according to the CFPB . Also read: California DMV digitises 42 million car titles with blockchain to fight fraud Also read: Could this misunderstood opportunity inject $60 trillion into the telco industry? Consumer protection laws are crucial for ensuring the rights and safety of consumers in the marketplace. These laws establish guidelines that businesses must follow, promoting fair treatment and preventing deceptive practices. By safeguarding consumers from fraud, misinformation, and unsafe products, these regulations help build trust in the marketplace, encouraging informed purchasing decisions.
Key Points
- U.S. Consumer Financial Protection Bureau ordered $89 Million violation fine of consumer protection laws in their joint credit card business.
- Two companies are investigated as mislead Apple Card customers in transaction disputes.
- Goldman Sachs may face restrictions on issuing new credit cards.
Actions
Pending intelligence enrichment.
