AP

NY regulator vows to investigate Apple Card for sex bias

Nov 9, 2019, 8:42 PM
FILE - In this March 25, 2019, file photo, Jennifer Bailey, vice president of Apple Pay, speaks abo...
FILE - In this March 25, 2019, file photo, Jennifer Bailey, vice president of Apple Pay, speaks about the Apple Card at the Steve Jobs Theater in Cupertino, Calif. A spokeswoman for the New York Department of Financial Services confirmed Saturday, Nov. 9, 2019 that they are investigating Goldman Sachs for possible sex discrimination in the way it sets credit limits. (AP Photo/Tony Avelar, File)
(AP Photo/Tony Avelar, File)

NEW YORK (AP) — A New York regulator is investigating Goldman Sachs for possible sex discrimination in the way it sets credit limits. The bank denies wrongdoing.

The investigation follows a series of viral tweets by entrepreneur and web developer David Heinemeier Hansson about algorithms used for the Apple Card, which Goldman Sachs manages in partnership with Apple.

Hansson said the card offered him a credit limit 20 times greater than it gave to his wife, even though she has a higher credit score. He called the algorithm a sexist program.

A spokeswoman for the New York Department of Financial Services confirmed Saturday that the agency will investigate.

The agency is “troubled to learn of potential discriminatory treatment in regards to credit limit decisions reportedly made by an algorithm of Apple Card, issued by Goldman Sachs,” said spokeswoman Sophia Kim. She said the department “will be conducting an investigation to determine whether New York law was violated and ensure all consumers are treated equally regardless of sex.”

“Our credit decisions are based on a customer’s creditworthiness and not on factors like gender, race, age, sexual orientation or any other basis prohibited by law,” said Goldman Sachs spokesman Andrew Williams. He added that the bank could not comment on decisions about individual customers.

Apple did not immediately respond to a request for comment.

In several tweets that were often liked thousands of times and frequently retweeted, Hansson didn’t disclose his or his wife’s income, but wrote that they have been married a long time, file joint tax returns and live in a community-property state. He tweeted that appeals when she got a far lower credit limit fell on deaf ears.

When Apple Card finally raised her credit limit without addressing the scoring system, he tweeted, it was essentially trying to “bribe one loud mouth on Twitter, then we don’t have to actually examine our faulty faith in THE ALGORITHM.”

Apple introduced the Apple Card earlier this year in a partnership with Goldman Sachs. A press release announcing the card called Goldman Sachs “a newcomer to consumer financial services” that was “creating a different credit card experience.” It pledged not to share or sell information to other parties for marketing and advertising.

“Simplicity, transparency and privacy are at the core of our consumer product development philosophy,” said Goldman Sachs Chairman and CEO David M. Solomon.

Today’s Top Stories

AP

DOHA, QATAR - NOVEMBER 25: A giant flag of IR Iran on the pitch prior to the FIFA World Cup Qatar 2...
ALI ABDUL-HASSAN and ABBY SEWELL Associated Press

US-Iran match reflects a regional rivalry for many Arab fans

The U.S. team’s must-win World Cup match against Iran will be closely watched across the Middle East, where the two nations have been engaged in a cold war for over four decades and where many blame one or both for the region’s woes.
6 days ago
Irene Cara in 'Fame' (Photo courtesy of Mgm/Kobal, Shutterstock)...
MARK KENNEDY, AP Entertainment Writer

‘Fame’ and ‘Flashdance’ singer-actor Irene Cara dies at 63

singer-actress Irene Cara, who starred and sang the title cut from the 1980 hit movie “Fame” and then belted out the era-defining hit “Flashdance ... What a Feeling” from 1983's “Flashdance,” has died. She was 63.
8 days ago
The U.S. Coast Guard ship Bernard C. Webber, leaves the coast guard base, Monday, July 19, 2021, in...
Associated Press

‘Miracle’: Missing cruise ship passenger found OK in water

The U.S. Coast Guard says a passenger who went overboard from a cruise ship in the Gulf of Mexico was rescued on Thanksgiving after likely being in the water for hours.
9 days ago
FILE - A Montana man was sentenced to three years in prison for his role in the Capitol riot. (AP P...
The Associated Press

Montana man gets 3 years in prison for role in Capitol riot

A Montana man will spend three years in federal prison for his role in the Jan. 6, 2021, riot at the U.S Capitol.
10 days ago
Debbie, left, and Chet Barnett place flowers at a memorial outside of the Chesapeake, Va., Walmart ...
The Associated Press

Walmart shooter left ‘death note,’ bought gun day of killing

According to authorities in Virginia, the Walmart shooter bought his gun just hours prior to killing six employees.
10 days ago
Dry lakebed...
Kira Hoffelmeyer

Lawsuit looms over tiny fish in drought-stricken West

RENO, Nev. (AP) — Conservationists have notified U.S. wildlife officials that they will sue over delayed decisions related to protections for two rare fish species that are threatened by groundwater pumping in the drought-stricken West. The Center for Biological Diversity sent a formal notice of intent to sue the Fish and Wildlife Service last week […]
12 days ago

Sponsored Articles

Spicy Homemade Loaded Taters Tots...
Macey's

5 game day snacks for the whole family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The best tools for Deaf and hard-of-hearing workplace success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...
Macey's

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
christmas decorations candles in glass jars with fir on a old wooden table...
Western Nut Company

12 Mason Jar Gift Ideas for the 12 Days of Christmas [with recipes!]

There are so many clever mason jar gift ideas to give something thoughtful to your neighbors or friends. Read our 12 ideas to make your own!
wide shot of Bear Lake with a person on a stand up paddle board...

Pack your bags! Extended stays at Bear Lake await you

Work from here! Read our tips to prepare for your extended stay, whether at Bear Lake or somewhere else nearby.
young boy with hearing aid...
Sorenson

Accommodations for students who are deaf and hard of hearing

These different types of accommodations for students who are deaf and hard of hearing can help them succeed in school.
NY regulator vows to investigate Apple Card for sex bias