<body><div><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=3OCwrM_0wIDxEoH00" alt="https://img.particlenews.com/image.php?url=3OCwrM_0wIDxEoH00" width="768" height="512" >Source: siteGoldman Sachs will be ordered to pay tens of millions of dollars in penalties by the Consumer Financial Protection Bureau over its handling of its credit-card business, according to people familiar with the matter.The enforcement action is tied to an investigation into Goldman’s customer service operations, including how it handled fraud and refunds, with a focus on its Apple credit-card partnership, the people said.Goldman has already been working to address the regulatory issues.The enforcement action is expected as soon as this week and the exact fine amount couldn’t be learned. The total penalties, which include some customer reimbursements, are expected to be north of $50 million.The rebuke comes as Goldman continues to struggle with exiting its failed consumer-lending business. Regulatory scrutiny over Goldman’s Main Street operations increased the firm’s expenses and delayed its path to profitability in consumer lending, ultimately contributing to the decision to begin exiting the space.Goldman’s top executives now tout a more streamlined institution focused on investment banking, markets and asset and wealth management. But the missteps in the consumer business continue to weigh on the firm.Since the beginning of 2020, Goldman has so far lost more than $6.5 billion on a pretax basis on a big chunk of its consumer-lending business.Last week, it disclosed a $415 million pretax hit in the third quarter tied in part to the sale of the General Motors credit-card program to Barclays. The loss, in part, reflects the price Barclays is willing to pay for the existing card balances and the high charge-off rates on the GM cards that Goldman issued.Goldman could be facing a bigger loss when it sells the Apple credit-card program to a new issuer.Goldman disclosed in 2022 that the CFPB was investigating its “credit card account management practices,” including how the bank resolved billing errors and refunded cardholders. The investigation has almost entirely focused on the Apple credit card, The Wall Street Journal has reported.The CFPB’s probe has involved looking into lags and lapses in providing cardholder refunds and addressing fraud issues, according to people familiar with the matter.Privately, some Goldman executives have blamed Apple for regulatory scrutiny that the bank has come under, the Journal has reported. One of the issues: Most card programs send out cardholders’ bills on a rolling basis throughout the month. Apple cardholders get their bill at the beginning of each month, which made it hard for Goldman customer-service employees to keep up with a flood of requests early every month.Goldman tried more than once to persuade Apple to change the billing date, according to people familiar with the matter. Apple has signaled that it is open to making this change for JPMorgan Chase, which is talking with Apple about taking over the tech company’s credit-card program, the Journal reported.</div></body>

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Goldman Sachs Faces CFPB Fine Over Credit-Card Business

Goldman Sachs will be ordered to pay tens of millions of dollars in penalties by the Consumer Financial Protection Bureau over its handling of its credit-card business, according to people familiar with the matter. The enforcement action is tied to an investigation into Goldman’s customer service operations, including how it...