Banking

Goldman Sachs, bank behind the Apple Card, says regulators are investigating its credit card practices – News Opener

Goldman Sachs CEO David Michael Solomon attends a discussion on “Women Entrepreneurs Through Finance and Markets” at the World Bank on October 18, 2019 in Washington, DC.

Olivier Douliery | AFP | Getty Images

Goldman Sachs said that its credit-card business is being investigated by the Consumer Financial Protection Bureau over a range of billing and payments practices.

The bank disclosed the probe in a quarterly filing on Thursday, saying that regulators were examining 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.”

While New York-based Goldman made no mention of its partnership with tech giant Apple in the filing, most of the bank’s $11.84 billion in card loans through the second quarter were from the Apple Card.

As part of CEO David Solomon‘s push into retail banking, meant to help diversify the investment bank’s revenue streams and provide a source of fintech-infused growth, Goldman launched the Apple Card in 2019. The product generated headlines and a J.D. Power citation for customer satisfaction last year.

It later announced a General Motors card, and management has said that the bank is also working on a Goldman-branded card. The firm ran into technical issues while porting over GM card users to its platform, the Wall Street Journal reported last month.

At Thursday’s low, Goldman shares fell as much as 0.7%.

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