Cupertino tech company’s financial partner for Apple Card, Goldman Sachs is under investigation by Consumer Financial Protection Bureau (CFPB). In its regulatory filing made this week, the bank disclosed that CFPB, a top U.S. consumer watchdog, is probing its credit card business.
In 2019, Apple entered the financial industry in partnership with Goldman Sachs with the launch of its own credit card, the Apple Card. With seamless integration with Apple mobile devices, the digital credit card helps consumers “read a healthier financial life” by offering features like no fees, daily cash back, and most importantly, privacy, security, and transparency.
Goldman Sachs is the issuer of Apple Card and handles underwriting, customer service, the underlying platform, and all matters related to regulatory compliance through Goldman Sachs Bank USA.
The credit card business of Apple Card issuer Goldman Sachs’ is under probe by U.S. Consumer Financial Protection Bureau
Reuters reports that the bank is fully cooperating with CFPB which is investigating its bank’s credit card account management practices, refunds, and billing error resolution.
At the launch of the Apple Card, the tech company said that Goldman Sachs ranked highest in the Midsize Credit Card segment in the J.D. Power 2021 U.S. Credit Card Satisfaction StudySM and earned a chart-topping score of 864. The bank also ranked highest in the Midsize Credit Card segment across all of the surveyed categories, including interaction, credit card terms, communication, benefits and services, rewards, and key moments.
The report also detailed that the bank’s CEO David Solomon has been planning to expand into consumer business to diversify its revenue base beyond trading and investment banking. Goldman Sachs expressed a similar roadmap for the bank’s future in consumer financing in 2019 at the launch of the Apple Card.
This partnership marks another significant step in growing the firm’s consumer franchise and realizing the broader vision of Marcus by Goldman Sachs to create a leading digital consumer platform, with partnerships as a core pillar of its strategy.