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Apple’s Apple Card partner bank, Goldman Sachs, said it was under investigation by the Consumer Financial Protection Bureau. The investigation focuses on Goldman’s credit card account management practices in the United States, of which the Apple Card is a major component.

According to Reuters, Goldman disclosed the investigation in its quarterly 10-Q form filed with the U.S. Securities and Exchange Commission.

The Consumer Financial Protection Bureau (CFPB) is the lead United States agency and watchdog for consumer protection in the financial sector. The Goldman Sachs investigation focuses on the bank’s credit card account management practices, which include a number of different factors.

Goldman stated that it is cooperating with the CFPB investigation in its filing with the SEC:

The firm is working with the Consumer Financial Protection Bureau to investigate credit card account management practices at GS Bank USA, including refunds, mismatched charges, billing errors, advertising, and credit bureau reporting. .

Goldman Sachs has only recently begun promoting the consumer credit card business in the United States; its partnership with Apple for the Apple Card is the biggest initiative it has undertaken so far. Reuters notes that the only other major consumer credit card offering is a credit card co-issued with General Motors.

Apple relies on Goldman Sachs for much of the financial backing of the Apple Card. This includes things like approvals and denials, credit limits, disputes, credit bureau reporting, and more.

Allegations of sexism Apple Card

Shortly after the launch, Apple and Goldman Sachs faced accusations that gender discrimination was affecting the algorithms used to determine Apple Card credit limits. These allegations prompted an investigation by the New York City Department of Financial Services.

Goldman responded to the allegations by stating that its credit decisions are “based on the customer’s creditworthiness and not on factors such as gender, race, age, sexual orientation, or any other basis prohibited by law.” Apple has never publicly responded to the allegations.

At this point, there are no details on exactly what the CFPB is investigating, but it’s likely that the Apple Card is at least included in the investigation given the large role it plays in Goldman’s consumer credit card business.

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