Apple Card Fail: Apple and Goldman Sachs Fined $89 Million
CFPB fined the companies for mishandling Apple Card transaction disputes and misleading iPhone purchasers about interest-free payment options.


Love the Apple Card and Apple products? If so, you may be interested to know that the Consumer Financial Protection Bureau (CFPB) has ordered Apple and Goldman Sachs to pay more than $89 million in penalties for the mishandling of customer disputes and misleading customers about payment options for Apple devices.
The CFPB is also banning Goldman Sachs from introducing a new credit card unless the company can provide a credible plan that the product will comply with the law. In fact, if Goldman Sachs makes another attempt to enter the credit card market, the CFPB plans to police the company to avoid repeat offenses.
“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers. Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law,” said CFPB Director Rohit Chopra.

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What were the Apple Card failures?
The CFPB found that Apple and Goldman Sachs misled consumers about interest-free payment plans for Apple devices. And, although many customers thought they would automatically get interest-free monthly payments when buying Apple devices with their Apple Card, they were instead charged interest. The interest-free payment option on certain browsers wasn’t even shown on Apple’s website. Beyond that, the CFPB also found:
- Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman Sachs, and when Apple did send disputes, Goldman Sachs did not follow federal requirements for investigating the disputes.
- Apple and Goldman Sachs launched the Apple Card despite third-party warnings that the Apple Card disputes system was not ready due to technological issues.
- Consequently, consumers faced long waits to get money back for disputed charges, and some had incorrect negative information added to their credit reports.
- Goldman Sachs misled consumers about applying some refunds, which led to consumers paying additional interest charges.
Of the $89 million, the CFPB is ordering Goldman Sachs to pay a $45 million civil money penalty and at least $19.8 million in redress to victims for its role in marketing, offering, and servicing the Apple Card. It is also ordering Apple to pay a $25 million civil money penalty to the bureau’s victims relief fund. Goldman Sachs is ordered to pay a $45 million civil money penalty and at least $19.8 million in redress to victims for its role in marketing, offering, and servicing the Apple Card. Payments from the Civil Penalty Fund depend on the amount of money available and other factors.
Apple Card / Goldman Sachs partnership
Because many of Apple’s products, such as the iPhone, are more expensive than other brands, many consumers favor financing purchases with payment plans and credit products. When Apple introduced the Apple Card in partnership with Goldman Sachs Bank in August 2019, the partnership allowed Apple to provide a financing program to help increase sales of its devices and induce spending at Apple’s retail stores and through the Apple App. At the time, the Apple Card partnership offered Goldman Sachs an opportunity to establish itself in the market.
With the Apple Card, Goldman Sachs extends credit to consumers and handles account servicing. Apple designed the customer-facing interfaces to manage Apple Card accounts on Apple devices. That includes a “Report an Issue” feature, which allows consumers to dispute Apple Card transactions. Apple was also deeply involved in marketing and advertising.
In December 2019, Apple and Goldman Sachs launched a new feature called Apple Card Monthly Installments. This feature allows users to finance the purchase of certain Apple devices with Apple Card directly from Apple through interest-free monthly installments, similar to a Buy Now, Pay Later product. However, when Apple’s customers experienced improper charges or filed disputes, the systems developed by the companies failed to address them.
Are you affected by the CFPB action?
According to the Civil Penalty Fund’s website, you could be eligible to receive a payment through the fund if you “were harmed by an unlawful activity where a fine was imposed in a CFPB case,” and you “won’t otherwise receive full compensation from the wrongdoer.” But you’ll have to wait until details about the distribution are available. Until then, you can submit complaints about financial products and services by visiting the CFPB’s website. Or, if you think you may be due a portion of the funds, call (855) 411-CFPB (2372).
If you're worried it's the end of the line for the Apple Card, think again. For the third consecutive year, Apple Card has been recognized with a No. 1 ranking in their segment in the U.S. Credit Card Satisfaction Study. Apple announced in November 2023 that it would end its credit card partnership with Goldman Sachs and has not announced which bank might be its new partner.
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For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
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