WASHINGTON, DC -21 FEB 2020- View of the headquarters building of the Consumer Financial Protection Bureau (CFPB) in Washington DC.
The CFPB has formally terminated its enforcement order against Apple Inc. after the company paid a $25 million civil penalty tied to its handling of Apple Card disputes and installment plan enrollment practices.
The October 2024 order stemmed from Apple’s role in managing the consumer-facing side of Apple Card, a product it launched with Goldman Sachs in 2019. Regulators found that Apple failed to forward tens of thousands of consumer billing disputes to Goldman for investigation and misled customers about enrollment in Apple Card Monthly Installments, a financing option for Apple devices.
The Bureau determined these failures violated the Consumer Financial Protection Act by constituting unfair, deceptive, or abusive acts and practices. Apple was ordered to overhaul its compliance systems and pay a $25 million penalty to the Bureau’s Civil Penalty Fund.
On Sept. 22, the CFPB, citing its authority under federal law and the terms of the consent order, formally terminated the order and waived any alleged non-compliance. Apple’s penalty has been fully paid.
The Bureau also pursued separate action against Goldman Sachs for its role in marketing and servicing the card. Goldman was ordered to provide $19.8 million in consumer redress and pay an additional $45 million penalty.
The Apple and Goldman cases highlight the CFPB’s scrutiny of joint ventures between technology companies and banks, where responsibilities for consumer protections can become blurred.
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