Goldman Sachs faces probe on credit limits set by Apple Card algorithms

Following a tweet from David Heinemeier Hansson, a tech entrepreneur, which alleged a discrimination in Apple Inc’s new credit card algorithms that are used to determine credit limits, a probe has been initiated into Goldman Sachs Group Inc’s credit card practices.

According to Hansson’s tweet, Apple Card has given him a credit limit that is 20 times greater than that his wife, reported Bloomberg on Saturday.

Although Hansson, creator of the web-application framework Ruby on Rails, didn’t disclose any specific income-related information for himself or his wife, he said, he and his wife filed joint tax returns and that she had a better credit score.

New York’s Department of Financial Services confirmed that an investigation was being conducted.

Andrew Williams, Goldman Sachs’ spokesman, declined comment saying the bank does not discuss matters involving individual customers publicly.

Apple Card, launched in August 2019, is Goldman’s first credit card.

According to a statement from The Department of Financial Services, it “will be conducting an investigation to determine whether New York law was violated and ensure all consumers are treated equally regardless of sex”. “Any algorithm that intentionally or not results in discriminatory treatment of women or any other protected class violates New York law.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s