Feds investigating Goldman Sachs’ credit card unit

FAN Editor

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

In a securities filing on Thursday, Goldman said the CFPB is examining a number of the company’s credit card account management practices, including refunds, resolving billing errors, advertisements 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 offering corporate banking and advisory services, has more recently pushing into retail banking, including the rollout of its Marcus by Goldman Sachs personal loan unit in 2016. It’s also waded into the credit card business via the Apple Card in 2019 and General Motors-branded cards through its Marcus division. 

While it’s not clear what sparked the CFPB investigation, the bureau’s database includes hundreds of consumer complaints about Goldman since 2019. Some involve problems receiving a refund or disputing fraudulent charges. 

For instance, in one complaint, a consumer described buying a $640 airline ticket with their Apple Card. When the flight was canceled and they didn’t get a refund, the consumer disputed the charge with Goldman. The bank denied the dispute and didn’t provide a refund or an explanation for that decision, the consumer claimed. 

Other customer complaints involve fees and trouble using Goldman-branded credit cards because of locked accounts or other issues. 

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