The long breakup between Apple and Goldman Sachs over their joint credit card has become even messier. The Consumer Financial Protection Bureau announced on Wednesday it had ordered both companies to pay a total of $89 million for allegedly mishandling disputed transactions and misleading consumers about interest-free payment plans for iPhones and other Apple devices.

The agency said these failures meant consumers faced long waits to get money back for disputed charges, and that they resulted in some customers wrongly receiving downgrades of their credit scores. The CFPB also said both companies launched the card in 2019 despite warnings from third parties that the system for handling such disputes was not ready due to tech issues.

“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers,” agency director Rohit Chopra said in a press release. “Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law.”

Apple, which is required to pay a civil penalty of $25 million to the agency’s victims relief fund, said it strongly disputed the characterization of its conduct but had reached an agreement with the agency.

“Apple Card is one of the most consumer-friendly credit cards available, and was specifically designed to support users’ financial health,” an Apple spokesperson said in a statement. “Upon learning about these inadvertent issues years ago, Apple worked closely with Goldman Sachs to quickly address them and help impacted customers.”

Goldman Sachs, meanwhile, will pay at least $19.8 million in redress to affected customers, along with a $45 million civil penalty and a temporary ban on issuing new cards. The company, which is exiting its existing card partnerships, said it was pleased to reach a resolution with the agency.

“We worked diligently to address certain technological and operational challenges that we experienced after launch and have already handled them with impacted customers,” company spokesperson Nick Carcaterra said in a statement.

The penalties, however, mark another low point for Goldman’s ill-fated foray into consumer banking and products. Last November, reports emerged that Apple would look for a new credit card partner, cutting short plans for the two companies to work together through 2029.  

That same month, the storied investment bank and wealth manager reached an agreement with General Motors that allowed the auto maker to find a new issuer for its card. Just over a week ago, Barclays announced it would take over the portfolio.

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