Goldman Sachs’s Credit Card Division Under Investigation by CFPB
- 05.08.2022 08:30 am
Goldman Sachs’ credit cards unit is undergoing investigation by the Consumer Financial Protection Bureau (CFPB).
According to a securities filing on Thursday, the Wall Street giant was a subject of examination by the CFPB for possible charges of fraud relating to the company's management issues in processing refunds, errors with consumer accounts, and reporting back to the bureau, and advertising.
A Goldman Sachs spokesperson stated they are cooperating with the federal agency in this investigation.
The details of the probe are still to be revealed, however, the firm has been the target of numerous customer complaints since 2019, with clients claiming unresolved problems with fees and refunds with their Goldman credit card accounts.
Goldman Sachs is reportedly absorbing over $1.2 billion in losses to back its move into the digital consumer market.