Goldman Sachs says regulators are investigating credit card practices

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

Olivier Douliery | AFP | Getty Images

Goldman Sachs said its credit card business is being investigated by the Consumer Financial Protection Office in a number of billing and payment practices.

The bank disclosed the investigation in a quarterly filing Thursday, saying regulators were examining its “account management practices, including with respect to applying chargebacks, crediting nonconforming payments, resolving billing errors , ads and reports to credit bureaus.”

Although 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 in the second quarter were from Apple Card.

As part of CEO David Solomon’s push into retail banking 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 JD Power. citation for customer satisfaction last year.

It later announced a General Motors card, and management has said the bank is also working on a Goldman-branded card. The company ran into technical issues while bringing GM card users onto 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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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!