October 4, 2022

Goldman Sachs said its credit card unit is under investigation by the Consumer Financial Protection Bureau, a federal agency charged with protecting Americans from financial abuse.

In titles archiving On Thursday, Goldman said the CFPB is looking into a number of the company’s credit card account management practices, including refunds, resolution of billing errors, advertising and reporting to credit bureaus.

In a statement to CBS MoneyWatch, Goldman said the bank is “cooperating with the CFPB on this matter.”

The Wall Street firm, known for handling money for wealthy clients as well as providing corporate banking and advisory services, has pushed more recently into retail banking, including its spread Marcus of Goldman Sachs Personal loans unit in 2016. It has also entered the credit card business through Apple Card in 2019 and General Motors branded cards through its Marcus division.

While it’s unclear what sparked the CFPB’s investigation, the bureau’s database includes hundreds of consumer complaints about Goldman dating back to 2019. Some involve refund problems or disputing fraudulent charges.

For example, in one complaint, a consumer described purchasing a $640 airline ticket with his Apple Card. When the flight was canceled and they did not receive a refund, the consumer disputed the charge with Goldman. The bank denied the dispute and did not provide a refund or explanation for this decision, the consumer claimed.

Other customer complaints involve fees and problems using Goldman-branded credit cards due to locked accounts or other issues.

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