Goldman Sachs is being investigated after a tech entrepreneur alleged gender discrimination in the way it sets credit limits. Entrepreneur and web developer David Heinemeier Hansson alleged that the new Apple Inc card algorithms used for determining credit limits for Apple Card is sexist. The algorithm is managed by Goldman Sachs in partnership with the tech giant. Hansson, in a series of tweets, said that he got a credit limit 20 times higher than that of his wife. This is when she has a higher credit score. Without disclosing any specific income-related information about himself or his wife, the web developer said they filed joint tax returns and the credit score of his wife was higher. Hansson is the creator of the web-application framework Ruby on Rails. He called the Apple Inc card algorithm a sexist program.
A spokeswoman for New York’s Department of Financial Services has confirmed that the agency is investigating the claims. “The agency is troubled to learn about potential discrimination in regards to credit limit decisions Apple Inc algorithm,” said spokeswoman Sophia Kim. Kim said the bank will investigate the matter to ensure that everyone gets equal treatment regardless of sex. However, the bank has denied any wrongdoing. Goldman Sachs spokesperson Andrew Williams declined to comment when asked about the accusations. The spokesman didn’t comment because Goldman follows the policy of not discussing matters involving individual customers publicly.
“Our credit decisions are not based factors like sexual orientation, race, gender, age, or any other basis prohibited by law,” Andrew Williams said. Apple has not immediately responded to a request for comment. The Apple Card is Goldman Sachs’s first credit card and it was launched in August this year. The American multinational investment bank offers different products to its consumers, including saving accounts and personal loans. The bank had called it a newcomer to consumer financial services in a press release while announcing the card. It added that the bank would create a different card experience. Than had pledged not to sell or share information with other parties for marketing and advertising.