Goldman Sachs says regulators are investigating credit-card practices

Goldman Sachs CEO David Michael Solomon attends a dialogue on “Ladies Entrepreneurs By Finance and Markets” on the World Financial institution on October 18, 2019 in Washington, DC.

Olivier Doulerie | AFP | Getty Photographs

Goldman Sachs mentioned its credit-card enterprise is being investigated by the Shopper Monetary Safety Bureau over a variety of billing and cost practices.

The financial institution disclosed the investigation in a quarterly submitting on Thursday, saying regulators have been inspecting its “account administration practices, together with with respect to the appliance of refunds, crediting of non-conforming funds, billing error decision, promoting and credit score reporting to the Bureau.”

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Whereas New York-based Goldman made no point out of its partnership with tech big Apple within the submitting, the vast majority of the financial institution’s $11.84 billion in card debt through the second quarter was from Apple Card.

As a part of CEO David Solomon’s push into retail banking, Goldman launched Apple Card in 2019 to assist diversify the funding financial institution’s income streams and supply a supply of fintech-infused development. The product made headlines and earned a J.D. Energy Quotation for buyer satisfaction. Final 12 months.

It later introduced the Common Motors card, and administration has mentioned the financial institution can be engaged on a Goldman-branded card. The Wall Road Journal reported final month that the agency bumped into technical points when porting GM Card customers to its platform.

Shares of Goldman fell as a lot as 0.7% to Thursday’s low.

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