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Goldman Sachs says Apple's friendly image won't stop it from chasing down debt

Apple Card
Apple Card (Image credit: Christine Romero-Chan / iMore)

What you need to know

  • Goldman Sachs was asked whether Apple's image would hamper it.
  • Apple is seen as a friendly company, but Goldman says that won't get in the way.
  • It'll still chase debtors as and when it needs to.

The Apple Card might have Apple's logo on it and it might have fewer strings attached then most credit cards, but that doesn't make it any less dangerous. And Apple's partner Goldman Sachs says it will chase down anyone who owes it money despite Apple's image.

The news came during a Goldman Sachs earnings call as reported by Business Insider. During the call Goldman CFO's pointed out that even though Apple may "lay claim" to Apple Card, it's still a Goldman Sachs card at heart.

"Whoever lays claim to the creation of the card, there's only one institution that's making underwriting decisions, and that's Goldman Sachs," says CFO Stephen Scherr.

It was also posed that Apple's brand and reputation might get in the way of Goldman's need to chase those who owe it money, with RBC Capital Markets analyst Gerard Cassidy asking a simple question – will the company need to look after Apple's reputation?

RBC Capital Markets analyst Gerard Cassidy asked Goldman if, when a recession hits and default rates rise, the Apple Card's marketing could make it difficult for the bank to chase down debtors, given the potential damage to Apple's brand and reputation for customer service."Are you going to be hamstrung trying to collect those delinquencies because of the way it's been branded as an Apple Card, and it's not a bank?" he asked finance boss Stephen Scherr on Goldman's earnings call.

In response, Scherr noted that the "ultimate decision sits with us" and that Goldman will "calibrate, manage our risk and collections in the context of that." In other words, if you owe money on your Apple Card and don't pay, someone will come knocking at our door. Regardless of whether it might tarnish Apple's reputation or not.

Oliver Haslam

Oliver Haslam has written about Apple and the wider technology business for more than a decade with bylines on How-To Geek, PC Mag, iDownloadBlog, and many more. He has also been published in print for Macworld, including cover stories. At iMore, Oliver is involved in daily news coverage and, not being short of opinions, has been known to 'explain' those thoughts in more detail, too.

Having grown up using PCs and spending far too much money on graphics card and flashy RAM, Oliver switched to the Mac with a G5 iMac and hasn't looked back. Since then he's seen the growth of the smartphone world, backed by iPhone, and new product categories come and go. Current expertise includes iOS, macOS, streaming services, and pretty much anything that has a battery or plugs into a wall. Oliver also covers mobile gaming for iMore, with Apple Arcade a particular focus. He's been gaming since the Atari 2600 days and still struggles to comprehend the fact he can play console quality titles on his pocket computer.

  • Are we supposed to be surprised that a credit card company isn't giving out free money?...
  • I guess some people are dense enough to think that Apple is giving them this money, and they won't mind having it back since Apple has so much cash in the bank, completely forgetting that this is actually a Goldman Sachs card
  • What??? You mean to tell me that if you use a credit card, you have to PAY it back???? Well I'm sure GS is hating me right now as they are making ZERO dollars from me. Use the card, pay it the next day. Earn the cash back without keeping a balance. What I use it for I would normally use my debit card for anyway.
  • Huh? When I got the card Apple said no late fees...I didn't have to pay the bill! You mean all this time I've been running up a balance but I was supposed to pay?? So now GS is going to come after me! Say it isn't so! I really thought instead of a line of "credit" I got a gifted $10,000 to spend and never pay back. What a scam to give me a "credit card" and I have to pay it back. LOL!!!!
  • Well, unfortunately, that’s how some people treat credit. Unless they get hounded they don’t pay.
  • They are not making money on you, but they are making money because of you. Each time you swipe or Apple Pay, the vendor pays between 3 - 6%. They are printing money. I wish I owned GS. 😁