Goldman Sachs faces US CFPB fine over credit card business, WSJ reports

(Reuters) -Goldman Sachs is facing a fine in the tens of millions of dollars from the U.S. Consumer Financial Protection Bureau over its credit card business, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The consumer watchdog’s enforcement action is tied to an investigation into Goldman’s customer service operations with a focus on the Apple (NASDAQ:AAPL) credit card partnership, the report said.

The enforcement action is expected to come this week, the report said, adding that the total penalties including customer reimbursements could be over $50 million.

Goldman Sachs and the CFPB declined to comment on the report.

In 2022, Goldman had disclosed that its credit card business was being investigated by the CFPB and other government bodies.

The investigations included scrutiny of the bank’s credit card management practices, refunds and billing error resolution, the bank had said at the time.

The fine would come as Goldman continues to struggle exiting its ill-fated consumer business two years after stepping back from it.

Goldman’s card partnership with Apple is also facing an uncertain future, with Wall Street titan JPMorgan in talks to replace the bank as the tech giant’s credit card partner, Reuters had reported.

The bank recently exited its credit card partnership with automaker General Motors (NYSE:GM), which earlier this month struck a deal with Barclays.

Last week, Goldman booked a $415 million hit that included a writedown related to the transfer of the credit business to Barclays.

The writedown was the latest in a string of losses from Goldman’s consumer banking foray, which had aimed to broaden the bank’s revenue beyond its traditional mainstays of investment banking and trading.

The bank has since shifted its focus onto its traditional mainstays.