Goldman Sachs said to face CFPB penalty related to Apple credit-card program

Goldman Sachs (NYSE:GS) will face a penalty of tens of millions of dollars from the U.S. Consumer Financial Protection Bureau for its handling of its credit card operations, according to a Tuesday media report.

The CFPB’s enforcement action is linked to a probe into Goldman’s (GS) customer service practices, particularly concerning its Apple (NASDAQ:AAPL) credit-card program, the Wall Street Journal reported, citing people familiar with the matter.

In late 2023, Apple (AAPL) had tapped out on its consumer-finance partnership with Goldman (GS), including exiting their credit-card and savings-account contract. The Journal reported last month that JPMorgan Chase (JPM) was in talks with Apple about assuming the iPhone maker’s card program from Goldman, which is already racking up losses from its costly consumer-sector exit.

The consumer watchdog’s enforcement action is expected to be announced this week, with total penalties, including customer reimbursements, potentially exceeding $50M, the WSJ reported.