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The bank that issues Apple's credit card is under investigation

Apple Card on iPhone and Apple Watch
Apple Card on iPhone and Apple Watch (Image credit: Apple)

Apple Card's issuing bank, Goldman Sachs, is now under investigation by a top consumer watchdog in the United States.

As reported by Reuters, the Consumer Financial Protection Bureau (CFPB) is investigating Goldman Sachs for a number of its business practices including "the bank's credit card account management practices, refunds, and billing error resolution."

The bank disclosed the investigation in a regulatory filing on Thursday and said that it is cooperating with the CFPB.

Apple Card is under the microscope again

This isn't the first time that Apple Card and Goldman Sachs have come under scrutiny for the bank's practices. Back when Apple originally launched its self-branded credit card in partnership with Goldman, the two came under scrutiny for the bank's credit approval decision-making process.

Some prominent critics of Apple pointed out at the time that, while they were able to get approved for the credit card, their spouse was unable to without any reason why despite having access to the same income and credit. Goldman Sachs responded to the criticism by assuring it will re-evaluate credit limits for potential gender bias and offered those who were denied a card or credit limit increase a chance to appeal the decision.

Apple Pay Later Home Screen

Apple Pay Later (Image credit: Apple)

Goldman's CEO at the time said that Apple Card was the most successful credit card launch of all time and Apple has continued to slowly add cash back, family, and privacy features to the card over the last few years.

Apple has also quietly been making moves into the credit industry to process its own applications and credit approvals. It's unclear exactly why the company is doing so but it is possible the company could break away from Goldman in the future and bring everything for Apple Card, and its other financial products, in-house.

Apple Card is the company's self-branded credit card that offers cardholders Daily Cash, more privacy with transactions, and a number of card management features to make it easy to share the card with your family.

Joe Wituschek
Joe Wituschek

Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.