13 Feb Apple Card: Goldman Sachs burns $1 billion with customer anger
The Apple Card has caused heavy losses for the US investment bank Goldman Sachs. Due to massive hassle for dealers and their customers. In the first nine months of 2022, the Platform Solutions division had posted a pre-tax loss of around $1.2 billion (1.1 billion euros). The losses, insiders tell Bloomberg news agency, are said to be linked to the Apple Card at the core. Rapid customer growth, for example, led to more and more complaints in the service department about disputed transactions and refund claims, which in turn necessitated further investment. Customers in Germany have had similar experiences with other credit card providers (the Apple Card is not yet available in this country) when payment balances that are actually due monthly are simply switched to a credited permanent debt relationship with very high interest rates without any verifiable order from the customer. It is often difficult for us to reverse or unwind such a transaction that is in breach of contract law. The Consumer Financial Protection Bureau (CFPB) began an investigation into Goldman Sachs’ card business last year to take a closer look at the “application of refunds, crediting of noncompliant payments, resolution of billing errors, advertising and reporting to credit bureaus.”