US fines Apple and Goldman Sachs over Apple Card

NEW YORK, Oct 24( AFP): The United States fined Apple and Goldman Sachs a total of $89 million on Wednesday, accusing them of deceiving users of the iPhone-maker's credit card.

Customer service breakdowns and misrepresentations affected hundreds of thousands of users of Apple Card, launched in a collaboration with the US banking titan in 2019, the Consumer Financial Protection Bureau (CFPB) said.

Apple failed to send tens of thousands of customer disputes about credit card transactions to Goldman Sachs, and when it did the bank did not follow federal requirements for investigating claims, the bureau said.

The bureau also said Apple and Goldman Sachs misled buyers about getting interest-free payment plans automatically when paying for Apple devices with the card, resulting in people unexpectedly paying for the debt.

"Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers," CFPB Director Rohit Chopra said in a release.

"Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law."