The Apple Card was released to the public in August and has been hailed for being easy to use and focusing on helping customers pay off their balances. Recently, however, it seems as though there may be some issues with the card after all — namely that the algorithms that determine a customer’s credit limit may be sexist. A few days after complaints first emerged, Goldman Sachs, the financial institution behind the Apple Card, has responded to the complaints.
“We have not and never will make decisions based on factors like gender. In fact, we do not know your gender or marital status during the Apple Card application process,” Goldman Sachs CEO Carey Halio said in a tweeted statement from the Goldman Sachs Bank Support account.
The issue first stemmed from a complaint from software developer David Heinemeier Hansson. According to Hansson, his wife Jamie Heinemeier Hansson applied for an Apple Card and was given a lower credit limit than him — despite the fact that they file joint tax returns, live in a community-property state, and have been married for years. According to an article in Fast Company penned by Jamie, she was given a credit limit 20 times lower than her husband’s — despite having an even higher credit score than him.
“It gets even worse,” David tweeted. “Even when she pays off her ridiculously low limit in full, the card won’t approve any spending until the next billing period. Women apparently aren’t good credit risks even when they pay off the f-ing balance in advance and in full.”
According to Halio, the issue may have to do with a customer’s supplemental credit cards compared to their spouse’s. Halio went on to say that the algorithms are unaware of marital status when you apply for an Apple Card.
After complaints first emerged, the New York State Department of Financial Services announced that it would investigate the Apple Card.
We’ll have to wait and see if the Apple Card’s algorithm is eventually tweaked — but for now, it’s not a good look for a company that wants to bring transparency to the credit card industry.