Goldman Sachs has admitted to a lot more difficulties for its lossmaking foray into retail banking, disclosing that the US shopper finance regulator is investigating how it manages accounts in its credit history card small business.

In a regulatory submitting on Thursday, Goldman said it was co-functioning with an investigation by the Purchaser Economic Protection Bureau into “the software of refunds, crediting of nonconforming payments, billing error resolution, adverts and reporting to credit bureaus” at its credit history card organization.

Goldman has issued two credit rating playing cards by means of company partnerships — its flagship Apple Card and 1 with Normal Motors. Apple and GM did not straight away reply to requests for comment. The CFPB claimed it does not comment on private supervisory and enforcement issues and investigations.

The CFPB investigation is a legal headache for a Goldman small business that only created about 2 for each cent of the bank’s $59bn in internet revenues very last calendar year.

It experienced about $12bn in credit card balances at the stop of June, up from $5bn a calendar year before. That is dwarfed by recognized rivals these types of as JPMorgan Chase, which experienced $165bn in credit score card financial loans very last quarter, reflecting Goldman’s significantly far more current force into principal road banking.

Goldman, which generates the huge greater part of its earnings from Wall Road investing and investment decision banking, entered purchaser banking in 2016 by the start of its Marcus model, a nod to its co-founder Marcus Goldman.

It grew out of Goldman’s conversion all through the 2008 economical crisis into a bank keeping enterprise, a transfer that authorized it to accessibility liquidity strains from the Federal Reserve and safe US federal government-backed insurance policy for its deposits.

The customer enterprise, which in addition to credit history cards also contains Marcus-branded price savings accounts and lending, created $1.5bn in profits past year. The financial institution is aiming to press profits previously mentioned $4bn by 2024.

Nevertheless, the enterprise is continue to lossmaking and Goldman has still to outline a timetable for when it will be profitable. Goldman’s 3 other advancement initiatives — asset management, wealth management and transaction baking — are worthwhile.

The client company has also cycled as a result of a sequence of leaders. Harit Talwar, the 1st head of Marcus and the former US cards boss at Uncover, in 2021 handed about working day-to-day administration to his longtime deputy, Omer Ismail. But Ismail abruptly departed Goldman for Walmart.

The consumer enterprise is now run by Peeyush Nahar, who joined Goldman past yr, having earlier worked at Uber and Amazon.