Apple, Goldman Sachs ordered to pay more than $89M over Apple Card

The Consumer Financial Protection Bureau ordered Goldman Sachs (NYSE:GS) and Apple (NASDAQ:AAPL) to pay more than $89M for allegedly mishandling the process for investigating disputed Apple Card transactions, the agency said on Wednesday.

The Wall Street Journal reported on Tuesday that a penalty in the tens of millions of dollars was imminent.

The CFPB alleged that Apple (AAPL) failed to send disputes to Goldman Sachs (GS) and when it did, Goldman didn’t follow numerous federal requirements for investigating them.

“Apple and Goldman launched Apple Card despite third-party warnings to Goldman that the Apple Card disputes system was not ready due to technological issues,” the CFPB said. “These failures meant that consumers faced long waits to get money back for disputed charges, and some had incorrect negative information added to their credit reports.”

Goldman (GS) was ordered to pay at least $19.8M in redress and a $45M civil penalty. Apple (AAPL) was ordered to pay a $25M civil penalty.

The CFPB also banned Goldman Sachs (GS) from launching a new credit card unless it can provide a “credible plan” that the product will comply with the law. The bank has since pared back its consumer finance businesses after incurring billions of dollars in losses.

“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” said CFPB Director Rohit Chopra. “Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law.”

The agency also found that the two companies allegedly misled consumers about interest-free payment plans for Apple devices.

Apple (AAPL) stock fell 0.5% and Goldman Sachs (GS) stock rose 0.1% in Wednesday morning trading.