The Consumer Financial Protection Bureau (CFPB) has levied a combined $90 million penalty against Apple and Goldman Sachs for issues related to the Apple Card. The CFPB gave the penalty as a result of failures in customer service and misrepresentations made to card users.

Only a month after Apple lowered the savings interest rates for the card, the CFPB found many issues with how the companies had been operating. The CFPB found that Apple did not effectively transmit consumer disputes to Goldman Sachs, and when disputes were transmitted, Goldman Sachs failed to adhere to federal requirements for investigations. Apple had been warned about the inadequacy of its dispute system before the launch of the Apple Card, yet the companies proceeded despite this. As a result, the CFBP found that consumers experienced delays in receiving refunds for disputed charges and, in some cases, suffered negative impacts on their credit reports.

The CFPB also says Apple misled consumers about interest-free payment plans for Apple devices. Consumers were led to believe they would automatically qualify for interest-free monthly payments when, in reality, interest was often applied. The CFPB also found that Apple did not always present the interest-free payment option on its website, and Goldman Sachs misrepresented the application of refunds, leading to unexpected interest charges for users.

An Apple spokesperson sent a statement to MacRumors about the finding, stating, “Apple is committed to providing consumers with fair and transparent financial products. Apple Card is one of the most consumer-friendly credit cards available, and was specifically designed to support users’ financial health. Upon learning about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address them and help impacted customers. While we strongly disagree with the CFPB’s characterization of Apple’s conduct, we have aligned with them on an agreement. We look forward to continuing to deliver a great experience for our Apple Card customers.”

The whole finding is very long and detailed, but essentially, the CFPB’s investigation found Goldman Sachs and Apple in violation of the Consumer Financial Protection Act and the Truth in Lending Act. Due to this, the CFPB has ordered Goldman Sachs to pay $19.8 million in redress to affected consumers, along with a $45 million civil money penalty. Furthermore, Goldman Sachs has been prohibited from introducing new consumer credit card products until it can provide a credible plan demonstrating compliance with the law. Apple will be required to pay a $25 million civil penalty into the Civil Penalty Relief Fund.

Source: Consumer Finance, MacRumors, Apple Insider