CFPB Is Investigating Goldman Sachs’s Credit-Card Practices


Goldman said a regulator is looking into its advertisements and how it reports consumer information to credit bureaus.



Photo:

Michael Nagle/Bloomberg News

Goldman Sachs

GS -0.36%

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.

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.

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.

The bank had about $12 billion in credit card loans outstanding at the end of June.

Write to Charley Grant at charles.grant@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


Goldman said a regulator is looking into its advertisements and how it reports consumer information to credit bureaus.



Photo:

Michael Nagle/Bloomberg News

Goldman Sachs

GS -0.36%

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.

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.

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.

The bank had about $12 billion in credit card loans outstanding at the end of June.

Write to Charley Grant at charles.grant@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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