Federal agency fines Apple and partner Goldman Sachs $89 million for Apple card fraud

We first heard that iPhone maker Apple was launching a new era of credit cards called the Apple Card in 2019. At first, it looked promising as the goal was to provide healthier financial opportunities.

But as the years passed, it became clear that the project was doomed from the start. Apple and its partner in the effort, Goldman Sachs faced incredible criticism for the way things were handled. Now, it’s payback time as top government regulators slap $89 million in fines on both companies.

They are accused of using deceptive marketing tactics and mishandling financial transactions. This resulted in damage to hundreds and thousands of users who invested in Apple Cards but got nothing but ruins in return.

Now the companies are ordered to pay heavy penalties to all those affected. According to Goldman Sachs, the CFPB has even banned alternative credit card launches until it can uncover credible plans that are legal.

Companies are completely violating the financial protection rules linked to the Apple card. many of the reports on the matter were damaged, mishandled and highly illicit. Both stakeholders harmed consumers by failing to process disputes, so in the end, consumers were on the losing end.

Goldman did not investigate any disputes sent by Apple in its direction. Thus, the agency adds, all credit card reports were damaged. In addition, deceptive offers such as interest-free financing were offered to those who used Apple Cards for Apple products. Again, this promise was never fulfilled. All users still had interests.

Goldman’s fines include $45 million with orders to pay $20 million to fix problems with clients. Apple was fined $25 million.

When it was first launched, the Apple Card seemed to be the push consumers needed in terms of loans. But things were not well planned and the rush led to the release of the card despite the huge obstacles present at the start.

Even today, Apple and its associate partner called the card a consumer-friendly project. They continue to stand by claims that they worked diligently to overcome obstacles after launch. Also, both companies think they did the best they could when it came to handling consumer issues and resolving disputes.

For now, Apple’s final statement on the matter is that it is working with Goldman Sachs to fix issues and help customers.

Image: DIW-Aigen

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