CFPB is investigating Goldman Sachs’s credit-card practices
The bank said regulators are looking at areas including how it handles customer refunds
Goldman Sachs Group Inc. said Thursday that regulators are investigating business practices at its credit card unit.
The bank said in a securities filing that the Consumer Financial Protection Bureau is looking into several areas, including how the bank handles customer refunds and resolves billing disputes. The regulator is also looking into Goldman’s advertisements and how it reports consumer information to credit bureaus, the bank said.
GOLDMAN SACHS CEO SAYS RECESSION RISK HIGH AS COMPANY PLANS TO SLOW HIRING
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GS | THE GOLDMAN SACHS GROUP INC. | 423.04 | -0.68 | -0.16% |
A Goldman spokesman said the bank is cooperating with the investigation.
Credit-card lending is a key part of the bank’s plan to grow its consumer finance arm, which launched about six years ago. Goldman expects the consumer bank to top $4 billion in annual revenue by 2024, roughly double what it is on pace to bring in this year.
FILE - In this Dec. 13, 2016, file photo, the logo for Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File)
Goldman launched its credit card business via a partnership with Apple Inc. in 2019. It also offers cards in partnership with General Motors Co., and CEO David Solomon said last month on an investor call that Goldman is looking for opportunities to add more.
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The bank had about $12 billion in credit card loans outstanding at the end of June.