Goldman Sachs mentioned that its credit-card enterprise is being investigated by the Consumer Financial Protection Bureau over a variety of billing and funds practices.
The financial institution disclosed the probe in a quarterly submitting on Thursday, saying that regulators had been inspecting its “account management practices, including with respect to the application of refunds, crediting of nonconforming payments, billing error resolution, advertisements, and reporting to credit bureaus.”
Whereas New York-based Goldman made no point out of its partnership with tech large Apple within the submitting, a lot of the financial institution’s $11.84 billion in card loans by way of the second quarter had been from the Apple Card.
As a part of CEO David Solomon’s push into retail banking, meant to assist diversify the funding financial institution’s income streams and supply a supply of fintech-infused progress, Goldman launched the Apple Card in 2019. The product generated headlines and a J.D. Energy citation for buyer satisfaction final 12 months.
It later introduced a Normal Motors card, and administration has mentioned that the financial institution can be engaged on a Goldman-branded card. The agency bumped into technical points whereas porting over GM card customers to its platform, the Wall Avenue Journal reported final month.
At Thursday’s low, Goldman shares fell as a lot as 0.7%.