Apple Card’s issuing bank, Goldman Sachs, is now under investigation by a top consumer watchdog in the United States.
As reported by Reuters, the Consumer Financial Protection Bureau (CFPB) is investigating Goldman Sachs for a number of its business practices including “the bank’s credit card account management practices, refunds, and billing error resolution.”
The bank disclosed the investigation in a regulatory filing on Thursday and said that it is cooperating with the CFPB.
Apple Card is under the microscope again
This isn’t the first time that Apple Card and Goldman Sachs have come under scrutiny for the bank’s practices. Back when Apple originally launched its self-branded credit card in partnership with Goldman, the two came under scrutiny for the bank’s credit approval decision-making process.
Some prominent critics of Apple pointed out at the time that, while they were able to get approved for the credit card, their spouse was unable to without any reason why despite having access to the same income and credit. Goldman Sachs responded to the criticism by assuring it will re-evaluate credit limits for potential gender bias and offered those who were denied a card or credit limit increase a chance to appeal the decision.
Goldman’s CEO at the time said that Apple Card was the most successful credit card launch of all time and Apple has continued to slowly add cash back, family, and privacy features to the card over the last few years.
Apple has also quietly been making moves into the credit industry to process its own applications and credit approvals. It’s unclear exactly why the company is doing so but it is possible the company could break away from Goldman in the future and bring everything for Apple Card, and its other financial products, in-house.
Apple Card is the company’s self-branded credit card that offers cardholders Daily Cash, more privacy with transactions, and a number of card management features to make it easy to share the card with your family.