A New York financial regulator said it is investigating claims of gender discrimination by the new credit card from tech giant Apple and its issuer Goldman Sachs. This comes after a cardholder’s tweet about his wife’s credit limit went viral.
American businessman David Heinemeier Hansson tweeted on Thursday that the Apple Card is a “f*cking s*xist program”. He also said the card’s “black box” algorithm had given him 20 times the credit limit of his wife. This is albeit the fact that they file joint tax returns and she has a higher credit score.
The @AppleCard is such a fucking sexist program. My wife and I filed joint tax returns, live in a community-property state, and have been married for a long time. Yet Apple’s black box algorithm thinks I deserve 20x the credit limit she does. No appeals work.
— DHH (@dhh) November 7, 2019
Hansson tweeted a series of messages recounting fruitless chats with Apple customer service agents. Unable to explain the disparity, they instead blamed it on the algorithm that determines an applicant’s credit-worthiness.
A “black box” algorithm refers to artificial intelligence systems whose decisions cannot be explained.
In March, Apple started offering the Apple Card, a credit card issued by banking giant Goldman Sachs.
New York state regulators will conduct “an investigation to determine whether New York law was violated”. It will also ensure equal treatment of all consumers regardless of s*x”. A spokesman for Linda Lacewell, the superintendent of the New York Department of Financial Services, made this known.
“Any algorithm, that intentionally or not results in discriminatory treatment of women or any other protected class of people violates New York law.”
Goldman spokesman Andrew Williams also said:
“Our credit decisions are based on a customer’s creditworthiness and not on factors like gender, race, age, s****l orientation or any other basis prohibited by law.”