The Consumer Financial Protection Bureau (CFPB) fined Apple (AAPL) and Goldman Sachs (GS) more than $89 million Wedn﷽esday after an investigation into the Apple Card.

The 澳洲幸运5官方开奖结果体彩网:two companies partnered in 2019 to offer the Apple Card, a credit card that worked with the iPhone maker's Apple Pay platform. The government financial watchdog said the companies mishandled transaction disputes and misled consumers about interest-free payment options on the card.

"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 Rohit Chopra, CFPB director.

As part of Wednesday's action against the two companies, Apple is required to pay $25 million to the CFPB victims relief fund. Goldman Sachs must pay at least $19.8 million to victims and a $45 million civil fine. The financial institution also must provide the CFPB with a plan before launching any new credit card products.

Issues With Transaction Disputes

The CFPB's investigation found that four days before the credit card’s launch, Goldman Sachs received third-party warnings that the Apple Card dispute system was not ready due to technological issues. Despite these war🌠nings, the card was la🔯unched, the CFPB said.

Because of the technical issues, some 𓄧cardholder disputes were never processed or investigated. This resulted in some consumers having damaging information added to their credit reports or being left responsible for potentially fraudulent or unauthorized purchases, the bureau found.

'Misleading' Monthly Installment Payment Plans

Apple also marketed a monthly installment plan tied to the credit card as automatic interest-free financing for consumers who purchased an Apple device with their Apple card. However, man♒y cardholders were charged interest because they were not automatically enrolled🗹 as they had previously thought, and some were not shown the financing option depending on the browser used.

Some Apple ca🅠rdholders held balances for the Apple Card Monthly Installments plan and other interest-bearing credit card balances. CFPB said Goldman Sachs misled more than 10,000 cardholders about which balance it would apply refunds to.

What's Next For the Apple Card?

Recently, the Wall Street Journal reported that 澳洲幸运5官方开奖结果体彩网:JP Mor♉gan Chase could take over as the backer of the credit card program after Apple and Goldman Sachs began parting ways in 2023.

Apple shares were down 3.4% Wednesday afternoon, while Goldman Sachs shares were down 0.6%.