We first heard about iPhone maker Apple rolling out a new era of credit cards called Apple Card in 2019. At the start, it sounded promising as the goal was to offer healthier financial opportunities.
But as years went on, it was clear that the project was doomed from the start. Apple and its partner for the endeavor, Goldman Sachs faced incredible criticism for the way things were handled. Now, it’s payback time as leading government regulators are imposing fines worth $89M on both companies.
They are accused of using deceptive marketing tactics and mishandling financial transactions. This resulted in harm to hundreds and thousands of users who invested in Apple Cards but got nothing but ruins in return.
The companies are now ordered to pay heavy penalties to everyone impacted. As per Goldman Sachs, it’s even been banned by the CFPB from rolling out alternative credit cards until it can bring credible plans to light that are lawful.
The companies are in complete violation of financial protection rules linked to the Apple Card. a lot of the reports on the matter were damaged, mishandled, and very wrongful. Both stakeholders harmed consumers by not processing the disputes so in the end, the consumers were at the losing end.
Goldman didn’t investigate any disputes that were sent in its direction by Apple. So all the credit card reports were damaged, the agency adds. Also, deceiving offers like interest-free finance were offered to those using Apple cards for Apple products. Again, that promise was never fulfilled. All users were still charged interest.
Goldman’s fines include $45M with orders to pay $20M to redress matters with clients. Apple got a fine of $25M.
When it was first rolled out, the Apple Card appeared to be the push that consumers needed in terms of lending. But things were not properly planned and the rush led to the card’s launch despite huge obstacles present at the start.
Still today, Apple and its associated partner called the card a project that was consumer-friendly. They continue to stand by claims that they worked diligently to overcome hurdles after the launch. Furthermore, both companies think they did the best they could in regards to handling consumer issues and finding a solution to disputes.
For now, Apple’s final statement on the matter is that it’s working with Goldman Sachs to address problems and assist customers.
Image: DIW-Aigen
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But as years went on, it was clear that the project was doomed from the start. Apple and its partner for the endeavor, Goldman Sachs faced incredible criticism for the way things were handled. Now, it’s payback time as leading government regulators are imposing fines worth $89M on both companies.
They are accused of using deceptive marketing tactics and mishandling financial transactions. This resulted in harm to hundreds and thousands of users who invested in Apple Cards but got nothing but ruins in return.
The companies are now ordered to pay heavy penalties to everyone impacted. As per Goldman Sachs, it’s even been banned by the CFPB from rolling out alternative credit cards until it can bring credible plans to light that are lawful.
The companies are in complete violation of financial protection rules linked to the Apple Card. a lot of the reports on the matter were damaged, mishandled, and very wrongful. Both stakeholders harmed consumers by not processing the disputes so in the end, the consumers were at the losing end.
Goldman didn’t investigate any disputes that were sent in its direction by Apple. So all the credit card reports were damaged, the agency adds. Also, deceiving offers like interest-free finance were offered to those using Apple cards for Apple products. Again, that promise was never fulfilled. All users were still charged interest.
Goldman’s fines include $45M with orders to pay $20M to redress matters with clients. Apple got a fine of $25M.
When it was first rolled out, the Apple Card appeared to be the push that consumers needed in terms of lending. But things were not properly planned and the rush led to the card’s launch despite huge obstacles present at the start.
Still today, Apple and its associated partner called the card a project that was consumer-friendly. They continue to stand by claims that they worked diligently to overcome hurdles after the launch. Furthermore, both companies think they did the best they could in regards to handling consumer issues and finding a solution to disputes.
For now, Apple’s final statement on the matter is that it’s working with Goldman Sachs to address problems and assist customers.
Read next: Google Open Sources Its SynthID Text Tool For Watermarking To Better Identify AI Text
