Goldman Sachs likely to pay CFPB fine over credit card business lapses

Michael Nagle/Bloomberg

Goldman Sachs Group is expected to pay a fine tied to a Consumer Financial Protection Bureau probe into its credit-card business, according to a person with knowledge of the matter.

The penalty is expected to be announced as soon as this week, the person said, asking not to be identified discussing private information.

Representatives for Goldman and the CFPB declined to comment. The Wall Street Journal reported that the bank is expected to pay more than $50 million tied to the probe earlier Tuesday.

Goldman disclosed in 2022 that the CFPB had been looking into the company's credit-card practices, including how it resolves incorrect bills and processes refunds. The probe was also examining advertisements and how Goldman credits "nonconforming payments" and reports information to credit bureaus. The bank was cooperating with the investigation, it said at the time.

Last year, Goldman said that investigations and inquiries into that business have expanded beyond the CFPB to include other government agencies.

Earlier this month, Goldman handed off its credit-card partnership with General Motors and recorded a $415 million hit. It is also trying to get out of its high-profile card partnership with Apple.