Federal regulators imposed penalties on Goldman Sachs and Apple on Wednesday, totaling over $89 million, for mishandling their credit card business, which affected hundreds of thousands of Apple Card users.

The Consumer Financial Protection Bureau (C.F.P.B.) fined Goldman Sachs $45 million and Apple $25 million. In addition, Goldman was ordered to pay at least $19.8 million in refunds to customers. Regulators also restricted Goldman from offering new credit cards, aside from the Apple Card, unless they submit a “credible plan” to ensure the product complies with the law.

The C.F.P.B.’s investigation, which spanned several years, scrutinized Goldman’s customer-service practices, particularly in relation to fraud handling and refund management in their credit card partnership with Apple. The inquiry revealed that customers were left with inaccurate credit reports and unresolved billing disputes due to the companies’ actions.

According to Rohit Chopra, C.F.P.B. director, Apple and Goldman did not adequately resolve customer complaints. He noted that even when disputes were raised, Goldman often failed to meet federal standards for prompt investigation and resolution.

The agency also highlighted that both companies misled consumers about interest-free financing options for Apple devices, charging significant interest despite suggesting to customers they would not face any.

Chopra described the launch of the Apple Card partnership in 2019 as poorly executed. “Key systems for the Apple Card weren’t ready,” he said, adding that Goldman Sachs’s board was aware of the issues but chose to move forward with the launch.

Goldman Sachs spokesperson Nick Carcaterra defended the Apple Card, calling it “one of the most consumer-friendly credit cards ever offered.” He acknowledged the technological and operational challenges but said Goldman had addressed them and worked with affected customers.

An Apple spokesperson stated that the company collaborated with Goldman to promptly resolve the “unintentional issues” from years ago and assist affected customers. Although Apple disagrees with the C.F.P.B.’s portrayal of the situation, they have reached an agreement with the agency.

While the $45 million fine against Goldman is small compared to the $3 billion profit the bank reported in its third-quarter earnings last week, Goldman continues to face difficulties with its consumer banking ventures. Last quarter, the bank set aside $397 million for credit losses, a significant increase from the previous quarter.

Goldman also recently sold its General Motors-branded credit cards to Barclays at a $415 million loss and has indicated plans to exit its partnership with Apple, which may lead to further losses.

In 2022, Goldman revealed that the C.F.P.B. was investigating how it handled cardholder refunds, billing disputes, and credit reporting. Other government agencies have since joined the inquiries into Goldman’s credit card business. Some Goldman executives have privately blamed Apple for the regulatory scrutiny, citing Apple’s billing cycle structure, which results in a flood of customer service inquiries at the start of each month, as reported by The Wall Street Journal.