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10 Nov, 2019 14:32

‘Apple Card is sexist’: Goldman Sachs faces probe after claims of gender biased credit limits

‘Apple Card is sexist’: Goldman Sachs faces probe after claims of gender biased credit limits

A New York financial regulator launched an investigation into Goldman Sachs’ credit card practices after Twitter users, including Apple co-founder Steve Wozniak, complained that Apple Card gives much lower credit limits to women.

The Wall Street bank behind Apple Card found itself in hot water after tech entrepreneur David Heinemeier Hansson lambasted the service’s “black box algorithm” for giving him 20 times the credit limit that his wife got. The thread, which was started on Thursday, has gone viral since then, gaining more than 5,000 retweets.

Some users and couples said they found themselves in the same situation. Tech legend Steve Wozniak also appeared in the comments section, revealing that he got a 10-times higher limit than his spouse, despite having no separate bank accounts or any separate assets.

The viral tweets have drawn the attention of the New York Department of Financial Services (NYDFS). Now the regulator wants to check if Apple Card’s algorithms on credit limits violate NY anti-discrimination laws, the deputy superintendent and special counsel at the NYDFS wrote on Saturday.

“Financial services companies are responsible for ensuring the algorithms they use do not even unintentionally discriminate against protected groups,” department superintendent Linda Lacewell said.  

Also on rt.com ‘Big Tech has got too big’: Steve Wozniak calls for Apple to be split

Goldman Sachs said in a statement to Bloomberg that its credit decisions are based solely on “creditworthiness” and have nothing to do with gender, ethnicity, age, or sexual orientation. However, the bank failed to explain why Hanson’s wife was eventually granted a stronger credit score without providing any additional documentation after the story became “a PR issue.”

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