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Apple Card issuer accused of conducting sexist credit checks

Apple Card issuer accused of conducting sexist credit checks

Nov 10, 2019
07:27 pm

What's the story

In a major shocker, Goldman Sachs, the issuer of Apple card and a leading multinational bank, has been accused of gender discrimination. Multiple tech entrepreneurs, including Apple's own co-founder Steve Wozniak, have alleged that the company has been allowing more credit limit to males than females while issuing the Apple Card. Now, the bank is facing legal scrutiny over the matter. Here's more.

Accusation

Allotting higher credit card limit to males

Back in March, Apple announced that it had partnered with Goldman Sachs for issuing its new Apple Card to users in the US. However, just a few months after the card's actual launch, David Heinemeier Hansson, the creator of web app framework Ruby on Rails, has shared a series of tweets accusing the company of sexism when determining credit limits.

Details

20 times higher limit allotted to Hansson

In the tweets, Hansson alleged he got a limit 20 times higher than that of his wife after they both applied for Apple Card. The tech entrepreneur didn't share financial data but claimed that both him and his wife had filed joint tax returns and the latter even had a better credit score. Additionally, he claimed Apple's customer service was of no help either.

Twitter Post

Here's what he said on Twitter

Revelation

Several people, including Wozniak, detailed a similar experience

The tweet from Hansson sparked a wave with several Apple Card applicants, including Apple's own co-founder Steve Wozniak, detailed a similar case. "The same thing happened to us," Wozniak tweeted. "I got 10x the credit limit. We have no separate bank or credit card accounts or any separate assets. Hard to get to a human for a correction though. It's big tech in 2019."

Investigation

Now, Goldman Sachs is facing an investigation

While Hansson's wife eventually received a 'VIP Bump' that gave her a higher credit limit, it was rather seen as a response to the public outcry. The matter has now escalated out of hand as the New York's Department of Financial Services has launched an investigation into the credit card practices of Goldman Sachs and the algorithms used by them for setting credit limits.

Quote

DFS will look for legal violations, intentional/unintentional sexism

DFS will conduct "an investigation to determine whether New York law was violated and ensure all consumers are treated equally regardless of sex," a spokesperson said, adding that algorithms that lead to "discriminatory treatment of women or any other protected class violates New York law."