Table of Contents
- Apple credit card accused of offering women lower credit limit despite having better scores than their spouses
- Goldman Sachs, the issuer of the Apple credit card, indicates that several factors are considered to approve a limit
- New York State Department of Financial Services initiates a probe on allegations of Apple Card discriminating against women
The Financial Services Department of New York is probing the Apple credit card over sexist claims. It comes at the back of accusations that the algorithm behind the credit card was sexist.
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Apple credit card discriminating women with better credit score
The debate began on Thursday after David Hansson raised an allegation of gender discrimination against the Apple credit card. Hansson claimed that the credit card gave him a credit limit that was 20 times that of his wife. It is despite both applying for the credit card using the same tax returns information. Although Hansson didn’t reveal any personal information, he alluded that the wife had a better credit score than his.
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Hansson strongly indicated that the Apple credit card is a sexist program that discriminates against women. He added that regardless of what Apple representatives stand for, the algorithm that they depend on the credit card is discriminatory. Hansson indicated that after he raised the issue, the credit card limit of his wife was increased.
Apple co-founder Steve Wozniak also voiced his displeasure about the Apple credit card incident. He joined the conversation and indicated that he had also received a credit limit ten times that of his wife. It was despite Wozniak and his wife Janet Hill holding the same bane and credit card accounts.
Various factors considered to approve limit beside credit score
The iPhone maker created and designed the Apple credit card, but it was Goldman Sachs that issued the card. The bank indicated that they evaluate all credit card applications independently. A spokesperson stated that they consider factors such as income, creditworthiness, including credit score, and amount of debt one owes. Equally, the bank looks at the management of the debt owed. As a result, there is a possibility that two individuals can receive considerably varying credit decisions.
Therefore it is possible that the difference between Hansson and his wife could have been based on a different variable. Credit limit approval might thus have been a factor of their incomes instead of the credit score.
New York Department of Finance initiates a probe
Following the angry complaint of Hansson on twitter, the DFS of New York has started an inquiry on the matter. The NYDFS is investigating the possibility of gender discrimination in determining credit limits for Apple cardholders.
NYDFS Superintendent Linda Lacewell indicated that the state regulator would investigate the matter. The probe seeks to determine whether there was a violation of New York laws. According to the NYDFS, all consumers deserve equal treatment despite their gender. Any Algorithm discriminating against women or any protected category of people violates the laws of New York State.
Rebecca White is chief editor at CreditRaters.com. Rebecca has an extensive amount of knowledge on financial subjects including short-term loans & debt consolidation in the UK and USA. Rebecca has wrote for many publishers such as Debt Secret, My Money, VL and more.