The Consumer Financial Protection Bureau hit Goldman Sachs and Apple with $89 million in financial penalties tied to their handling of the Apple Card.
Goldman was hit with a $45 million civil money penalty, while Apple must pay $25 million.
In addition, Goldman must pay at least $19.8 million in redress to impacted Apple Card users. Goldman was also barred from launching a new credit card unless it provides a credible plan that such a product would comply with the law.
The agency said that Apple and Goldman played unique roles with Apple Card that led to widespread consumer harm. For instance, Apple failed to send tens of thousands of consumer disputes to Goldman. Also, Goldman failed to follow numerous federal requirements to investigate when it received those disputes.
The CFPB also claimed that Goldman misled cardholders about refunds.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” CFPB Director Rohit Chopra said in a press release. “Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law.”