Are women being discriminated against by not being allowed to run up quite as gigantic credit card debts as they might? The New York Times is all over this pressing issue:
A prominent software developer said on Twitter that the credit card was “sexist” against women applying for credit.
By Neil Vigdor
Nov. 10, 2019
Something curious happened when a husband and wife recently compared their Apple Card spending limits.
David Heinemeier Hansson vented on Twitter that even though his spouse, Jamie Hansson, had a better credit score and other factors in her favor, her application for a credit line increase had been denied.
Mr. Hansson, a prominent software developer, wondered how his credit line could be 20 times higher, referring to Apple Card as a “sexist program” (with an expletive added for emphasis).
The card, a partnership between Apple and Goldman Sachs, made its debut in the United States in August.
“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 Thursday on Twitter. “Yet Apple’s black box algorithm thinks I deserve 20x the credit limit she does.”
Mr. Hansson’s tweets caught the attention of more than just his 350,000 followers.
They struck a nerve with New York State regulators, who announced on Saturday that they would investigate the algorithm used by Apple Card to determine the creditworthiness of applicants.
Algorithms are codes or a set of instructions used by computers, search engines and smartphone applications to perform tasks, from ordering food delivery to hailing a ride — and yes, applying for credit.
The criteria used by the Apple Card are now being scrutinized by the New York State Department of Financial Services.
“Any algorithm that intentionally or not results in discriminatory treatment of women or any other protected class violates New York law,” an agency spokeswoman said in a statement on Saturday night.
“DFS is troubled to learn of potential discriminatory treatment in regards to credit limit decisions reportedly made by an algorithm of Apple Card, issued by Goldman Sachs, and the Department will be conducting an investigation to determine whether New York law was violated and ensure all consumers are treated equally regardless of sex,” the statement said.
Do you ever get the impression that as our culture gets More Woke it also gets more in debt? Funny how that seems to work …
The Apple Card offers an APR between 12.99 percent and 23.99 percent based on your credit score. On the low end, that’s lower than the national average APR of 17.67 percent, but it doesn’t offer APRs as low as some other credit cards.