CFPB investigating Goldman Sachs over credit card practices

Goldman Sachs’ credit card business is being investigated by the Consumer Financial Protection Bureau (CFPB), the company disclosed in a quarterly filing.

CFPB investigating Goldman Sachs’ credit card business

The banking giant says the regulator is examining its “credit card account management practices, including with respect to the application of refunds, crediting of nonconforming payments, billing error resolution, advertisements, and reporting to credit bureaus”.

Goldman Sachs says it is cooperating with the CFPB in its investigation.

The bank teamed up with Apple in 2019 to issue credit cards linked to iPhones. It also acquired General Motors’ credit card portfolio for a reported $2.5 billion in 2020.

The company also acquired robo-advisor NextCapital for an undisclosed sum earlier this year.

In July, the CFPB announced it had fined Bank of America (BoA) $100 million for “botching” the disbursement of state unemployment benefits at the height of the pandemic.

In a separate order, the Office of the Comptroller of the Currency (OCC) also fined BoA $125 million for “violations of law and unsafe or unsound practices relating to the bank’s administration of a prepaid card program to distribute unemployment insurance and other public benefit payments”.