Apple and Goldman Sachs fined for Apple Card-related errors

Apple and Goldman Sachs have been hit with significant fines totalling $89 million due to serious misconduct in the management of the Apple Card. This product, which was created as an innovative step towards connecting technology and financial services, has not only brought both companies profits, but now reputational losses.

The U.S. Consumer Financial Protection Bureau (CFPB) has ruled that due to improper handling of customer disputes and other errors Goldman Sachs $GS has also been temporarily banned from issuing new credit cards.

Apple Card problems

One of the main reasons for the fine was the failure of Apple $AAPL and Goldman Sachs to adequately resolve customer disputes regarding transactions on their Apple Card. The CFPB found that Apple failed to refer thousands of Apple Card disputes to its partner Goldman Sachs, which had a duty to resolve them. When disputes were reported, Goldman Sachs did not comply with federal regulations regarding their investigation. As a result,…