Apple, Goldman Cleared Of Unlawful Lending Discrimination Claims

New York’s Department of Financial Services has found no evidence of lending discrimination in an investigation into Apple’s credit card, the state agency announced Tuesday.

According to Reuters, the department launched its probe into The Apple Card and its underwriter Goldman Sachs last year — soon after the card launched — after software developer David Hansson alleged the card’s algorithms committed gender bias, giving him a much higher credit limit than his wife.

Writing on Twitter, Hannson said that although his wife had a higher credit score than he did, her application for an increased credit line was rejected, leaving him with a credit line 20 times higher than hers.

“My wife and I filed joint tax returns, live in a community-property state, and have been married for a long time,” Mr. Hansson wrote. “Yet Apple’s black box algorithm thinks I deserve 20x the credit limit she does.”

At the time, a Goldman Sachs spokesman said the algorithm made its determination solely on an applicant’s credit worthiness, not factors such as gender, age or race.

The state’s investigation looked at thousands of documents provided by Apple and Goldman, interviews with card applicants and data from approximately 400,000 New York state residents who applied for the card, which was Goldman Sachs' first card offering.

Last year, PYMNTS reported that Goldman was approving some borrowers who were subprime, with Apple apparently seeking a bank partner to “create a platform that would approve the most possible U.S. iPhone users within the range of responsible lending and regulations.”

Apple also launched a program last year designed to help Apple Card hopefuls whose applications were declined boost their credit ranking. Applicants who were rejected also had the option to take part in a four-month program in which the information they provided to Goldman Sachs can be used to find ways to improve their credit score for acceptability later on.