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When Apple announced it was launching Apple Card in 2019, 

 “a new kind of credit card” that was “designed to help customers lead a healthier financial life.”

Now, government regulators say Apple and its partner Goldman Sachs caused harm to hundreds of thousands of cardholders by mishandling disputed transactions and by using deceptive marketing practices.

The Consumer Financial Protection Bureau, a federal agency, 

 to pay a combined $89 million in penalties and redress to those affected. The CFPB has also banned Goldman Sachs from launching a new credit card unless it provides “a credible plan” that the product will comply with the law.

“The companies violated consumer financial protection laws through their practices related to Apple Card,” said CFPB Director Rohit Chopra 

 on Wednesday. “This led to wrongful charges, mishandled disputes, and damaged credit reports.”

The CFPB says the companies harmed consumers by failing to process disputed transactions, meaning cardholders were unfairly held responsible for the charges. 

Goldman often failed to investigate the disputes Apple did send, damaging cardholders’ credit reports, the agency says. The companies also marketed interest-free financing if people used the card to buy Apple devices, but many cardholders who had expected to be automatically enrolled were instead charged interest.

An investigation by the CFPB found violations of the Consumer Financial Protection Act and the Truth in Lending Act.

“These failures are not mere technicalities,” Chopra added. “They resulted in real harm to real people.”

The CFPB fined Goldman $45 million and ordered it to pay $20 million in redress to customers. Meanwhile, Apple was fined $25 million.

When it launched, Apple Card represented a new push into consumer lending for both the tech behemoth and the Wall Street giant. But the CFPB describes a rush to launch the card despite an array of problems that ultimately hurt users.

In statements to NPR, both Apple and Goldman Sachs defend the card as consumer-friendly.

“We worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers,” said Nick Carcaterra, a spokesperson for Goldman Sachs, adding that the company is pleased to reach a resolution with the CFPB.

Apple said it had worked closely with Goldman Sachs to address the issues and help customers.

“While we strongly disagree with the CFPB’s characterization of Apple’s conduct, we have aligned with them on an agreement. We look forward to continuing to deliver a great experience for our Apple Card customers,” said an Apple spokesperson.

 about taking over its credit card program from Goldman Sachs.

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Laurel Wamsley

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Regulators say the companies hurt hundreds of thousands of users of the credit card, which Apple launched in 2019.

Apple and Goldman Sachs ordered to pay $89 million over Apple Card failures

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