According to a media report, the bank is suffering from the massive growth of the Apple credit card. Something goes wrong with customer service.
Apple has had its own – mainly digital – credit card on the market for almost three years: The Apple Card in cooperation with the issuing financial institution Goldman Sachs is said to have almost 7 million customers by now. However, after rapid growth, things are now apparently crunching in the woodwork: In the USA, where the card has been available exclusively so far, the responsible regulatory authority is interested in problems with customer service from Apple and Goldman Sachs.
Lots of repayment requirements
Apparently, the Apple Card has more disputed transactions and chargeback requests than is common in the industry. Goldman Sachs has difficulties in responding to customer requests, sometimes providing conflicting information and making those affected wait a long time. That informed circles reported the US stock exchange broadcaster CNBC.
Accordingly, the responsible financial regulator in the United States of America, the US Consumer Financial Protection Bureau (CFPB), has already become aware of the problems. This currently has run an investigation, which appears to have been triggered at least in part by problems with the Apple Card. Topics are therefore Goldman Sachs’ credit card practices – including how the company corrects incorrect invoices and handles repayments. In addition, the advertising for the credit card products and the handling of defaulting payers are examined.
The “mishaps” in the credit card department of the major bank are more reminiscent of typical problems of classic providers of such cards than of a “customer-first disruptor”, as Apple and Goldman Sachs like to see each other, according to the CNBC report. Difficulties with payment processes are said to have increased, especially during the pandemic – customers were increasingly demanding repayments and Goldman Sachs was reacting too slowly. Apple Card customers would have to wait longer than the law actually allows.
There are “long queues” with customer inquiries that cannot be processed in time. “The business is getting so big that we’ve had to create a lot more automation to deal with it,” a Goldman Sachs source told CNBC. Meanwhile, customers are venting their anger online. A person affected writes on Reddit that he should suddenly pay 930 US dollars allegedly paid with Apple Pay and his card at an Apple Store had been. “Until now I have never experienced less professional service from a large company. It was an absolute nightmare.”