News

Goldman faces investigation over allegations of gender discrimination in Apple Card algorithms

by Justine Coleman

Goldman Sachs Group Inc is facing an investigation into its credit card practices over allegations of gender discrimination in its Apple Card algorithms, Reuters reported Sunday.

The investigation was sparked after tech entrepreneur David Heinemeier tweeted Thursday against the Apple Card for providing him a credit limit that was 20 times what his wife got, as reported by Bloomberg Saturday. While he did not release specifics about income, he said the couple filed joint tax returns, but his wife had a higher credit score.

{mosads}The New York Department of Financial Services confirmed to Reuters that the probe into Goldman was initiated saying 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,” the department’s statement said.

Andrew Williams, a Goldman Sachs spokesman, declined to comment to the news wire on Heinemeier’s tweeted concerns because the bank doesn’t talk about individual customers publicly. 

Williams said in a statement that credit applications are evaluated individually based on factors like personal credit scores, how much debt a person has and how a person handles their debt.
 
“In all cases, we have not and will not make decisions based on factors like gender,” the statement reads.
 

The Hill reached out to the New York Department of Financial Services.

Goldman’s first credit card launched in August, which would allow users to synch their Apple Wallet and purchase Apple products at a discount, according to Reuters.

Updated on Monday at 11:00 a.m.