February 7, 2023

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 stock deposit On Thursday, Goldman said the CFPB is studying a number of the company’s credit card account management practices, including refunds, resolving 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 recently begun to get into retail banking, including offering Marcus by Goldman Sachs Personal Loans Unit in 2016. It also entered the Apple Card credit card business in 2019 and GM-branded cards through its Marcus division.

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

For example, in one complaint, a consumer described purchasing a $640 airline ticket with their Apple Card. When the flight was canceled and they were not refunded, the consumer contested the charge with Goldman. The consumer claimed that the bank denied the dispute and did not provide any response or explanation for this decision.

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

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