A Wall Street regulator will inspect Goldman Sachs Group's credit card practices in connection with allegations that it discriminated against clients on the basis of gender when calculating loans for Apple Card holders, according to the deputy head of this supervisory authority Gareth Rhodes.
According to Gareth Rhodes, New York’s Department of Financial Services will launch an investigation to "establish whether New York's anti-discrimination laws have been violated, and to ensure that all consumers are served equally, regardless of gender".
Rhodes explained that regulators drew attention to this issue due to a series of posts made over the past few days on social networks by entrepreneur David Heinmeier Hanson, who specialises in technology.
After @dhh reports of inherent bias in algorithm for Apple Card credit-limit decisions, @NYDFS to open an investigation to determine whether NY anti-discrimination law was violated & ensure all consumers are treated equally regardless of sex. https://t.co/FOe3Z41J8c— Gareth Rhodes (@GarethRhodes) November 9, 2019
Hanson said on 7 November that he and his wife were trying to get a loan using an Apple Card, one of whose financial operators is Goldman Sachs. According to the entrepreneur, the maximum loan amount that he was allowed to take was about 20 times more than the amount that his wife could get. Hanson emphasised that his wife has a better credit history than he does.
Representatives of Goldman Sachs said that the bank gives loans only "based on the creditworthiness of customers" and does not take into account their gender, race, age, or other factors. Apple representatives announced the specified credit card in March this year. It became available in the US in August. The card allows you to make purchases using the Apple payment system on more favourable terms.