Episode Details

Hey all, Jason here.

This Sunday, I have a “hybrid” post for you — both regular newsletter content and a special podcast conversation about banking-as-a-service and regulation, with guests Sankaet Pathak, co-founder and CEO of Synapse, and Shaul David, Head of Banking at Railsr.

We had a wide-ranging conversation about the space, including:

* How banking-as-a-service can help bank/fintech partnerships to scale

* Why some banking-as-a-service platforms want to be regulated

* How to ensure customers funds are protected when a fintech (or bank, or e-money institution) fails

* Predictions for the future of banking-as-a-service

* and more

Click “Listen Now” above or find the show on Apple Podcasts, Google Podcasts, Spotify, or anywhere else you listen to pods.

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How Do Goldman Sachs’ CFPB Complaints Stack Up?

Last week, we learned that the CFPB is investigating Goldman Sachs, which issues co-branded cards with Apple and General Motors, over its “credit card account management practices, including with respect to the application of refunds, crediting of nonconforming payments, billing error resolution, advertisements, and reporting to credit bureaus.”

Now, CNBC is reporting one possible source of the scrutiny is how Goldman handles chargebacks on its cards. Per CNBC (emphasis added):

“When an Apple Card user disputes a transaction, Goldman has to seek a resolution within regulatory timelines, and it sometimes failed at that, said the people, who requested anonymity to speak candidly about the situation. Customers were sometimes given conflicting information or had long wait times, the people said.

Goldman got more disputes than it counted on, said one source. ‘You have these queues that you need to clear out within a certain amount of time. The business was getting so big, suddenly we had to create more automation to deal with it.’

…Regulators are focused on customer complaints from the past few years, and the biggest source of those came from attempted chargebacks…”

The Fair Credit Billing Act (FCBA) requires card issuers to acknowledge receipt of a dispute within 30 days and to investigate and resolve them within two billing cycles (not to exceed 90 days).

Goldman Sachs’ Most Common Complaints

Since launching its first credit card, the Apple Card, in August 2019, consumers have lodged

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