The regulatory agency says that customer service breakdowns and misrepresentations impacted hundreds of thousands of Apple Card users.Following a two-year investigation, the watchdog found that Apple failed to send tens of thousands of consumer disputes of Apple Card transactions to Goldman Sachs, and when Apple did send disputes, the bank did not follow numerous federal requirements for investigating the disputes. The CFPB alleges that Apple and Goldman launched Apple Card despite third-party warnings to Goldman that the disputes system was not ready due to technological issues. These failures meant that consumers faced long waits to get money back for disputed charges, and some had incorrect negative information added to their credit reports. The CFPB is ordering Goldman Sachs to pay at least $19.8 million in redress and a $45 million civil money penalty, and Apple to pay a $25 million civil money penalty. The CFPB is also banning Goldman Sachs from launching a new credit card unless it can provide a credible plan that the product will actually comply with the law.The CFPB also found that Apple and Goldman Sachs misled consumers about interest-free payment plans for Apple devices. Many customers thought they would automatically get interest-free monthly payments when buying Apple devices with their Apple Card. Instead, they were charged interest. In some cases, Apple did not even show the interest-free payment option on its website on certain browsers. Goldman Sachs also misled consumers about the application of some refunds, which led to consumers paying additional interest charges.“Apple and Goldman Sachs illegally sidestepped their legal obligations for Apple Card borrowers. Big Tech companies and big Wall Street firms should not behave as if they are exempt from federal law,” says CFPB Director Rohit Chopra. “The CFPB is banning Goldman Sachs from offering a new consumer credit card unless it can demonstrate that it can actually follow the law.”Goldman Sachs is unlikely to re-enter the credit card market any time soon after being badly burned by its foray into the consumer financial services realm. The Wall Street giant recently offloaded its stake in the GM cards business to Barclays and is rumoured to be in talks with JPMorgan about taking over Apple Card.