In the wake of Apple Card’s surprise success, a fresh report suggests that Goldman Sach’s failure to handle the demand may have triggered a regulatory investigation against the bank.
“The bank’s credit card account management procedures, refunds, and billing mistake resolution” were the subject of an investigation by the Consumer Financial Protection Bureau (CFPB) last week.
Apple Card’s quick expansion and “a bigger-than-expected surge of disputed transactions” may be to blame, according to new information.
Apple’s credit card issue
There were “difficulties, resulting in failures more evocative of a conventional issuer than a customer-first disruptor” due to Apple Card’s “rapid development,” according to the new research.
An “unexpectedly large inflow of disputed transactions, known in the business as chargebacks (opens in new tab)” was encountered by Goldman during the epidemic, as the study states.
Chargebacks were not resolved within regulatory deadlines by Goldman, and some consumers were given inconsistent information or had extended wait periods, according to a report.
Goldman “received more disagreements than it expected,” according to the article. Even while Apple was not officially mentioned in the inquiry, the “majority” of the 11.84 billion in card loans made to far came through Apple Card and that chargebacks are the primary source of consumer complaints authorities are concentrating on.
In several situations, Goldman declined to side with consumers even when proof of fraud was presented, according to the investigation.
It was announced in 2019 and is a part of the Wallet software for iPhones, which is called Apple Card. Users may apply for a card, make purchases, and settle their debts all on their iPhones.