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Does the Apple Card's algorithm discriminate against women?
Things started with David Heinemeier Hansson's Twitter post where he wondered how his wife's credit limit could be 20 times lower than his when she has better credit score and they file joint tax returns. That was followed by Steve Wozniak's twitter where he also wrote that his wife got lower credit limit even though they share bank and credit card accounts.
Apple and Goldman Sachs launched the Apple Card in August. The companies advertised that the card would be available to the consumers with low credit scores, including to people who struggle to access credit. However, it was unexpectedly for consumers that the Apple Card's algorithm would discriminate against women.
It appears that the Apple Card's algorithm extends lower credit limits to women, even though they have better credit and longer credit history. However, Goldman Sachs affirms that the company does not consider gender in determining credit limits. The company stated that all applications are evaluated independently where individual's income and individual's creditworthiness are considered. The company also stated that they do not know the applicant's gender or marital status during the Apple Card application process.
In response to Twitter posts and user complaints, the New York Department of Financial Services (NY DFS) decided to investigate Goldman Sachs and Apple Card. The investigation will be conducted to determine whether New York law was violated, intentionally or unintentionally, and to ensure all consumers are treated equally regardless of gender.