Apple and Goldman Sachs ordered to pay $89 million after Apple Card failures

The US financial regulator has imposed an $89 million penalty on two major companies due to their mismanagement of a credit card partnership. One company faces a temporary ban on issuing new credit cards. The mishandling resulted in unresolved disputes and incorrect credit reports for customers.

It was found that one company failed to adequately handle dispute reporting, leaving many complaints unaddressed. The initiative was launched despite warnings about unprepared systems, leading to prolonged waits and erroneous credit information for consumers.

Additionally, there were discrepancies between advertised interest-free payment plans and the actual costs incurred by customers, contradicting promotional claims about fee-free features.

Responding to the situation, one company expressed disagreement with the regulatory findings but acknowledged efforts to resolve past issues. The other company communicated satisfaction with reaching a resolution, citing ongoing efforts to address earlier technological challenges.

Penalties include $45 million in fines for one company and $25 million for the other. Restrictions have been placed on issuing new credit cards, contingent upon regulatory compliance assurances.

This development marks another setback for a struggling consumer lending division, which also terminated a major credit card partnership earlier this year. The affected credit card launched in August 2019, marking a significant expansion into retail consumer services.