Credit Cards

Warren blasts Goldman Sachs over its Apple card and ‘discriminatory’ algorithms

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Sen. Elizabeth Warren unloaded on Goldman Sachs and the bank’s handling of claims that its Apple Card exhibits bias against women thanks to what she categorized as “discriminatory” algorithms.

Warren, who is running for president in the 2020 election, said that Goldman’s response to the criticism is insufficient in an interview with Bloomberg News. Goldman, which oversees banking decision’s on Apple’s much-hyped card, has asked customers who believed they’ve been affected to double-check their credit limits.

“Let’s just tell every woman in America, ‘You might have been discriminated against, on an unknown algorithm, it’s on you to telephone Goldman Sachs and tell them to straighten it out,’” Warren said in an interview with Bloomberg. “Sorry guys, that’s not how it works.”

The showy new credit card from Apple and Goldman first came under fire last week, when tech entrepreneur David Heinemeier Hansson wrote a series of tweets complaining that he got a credit limit 20 times higher than his wife, despite the fact that the couple files tax returns jointly.

The New York Department of Financial Services later launched an investigation into Goldman to determine whether the bank violated state law and to “ensure all consumers are treated equally regardless of sex.”

For its part, Goldman has denied the allegations of bias and said on Monday that it will reassess credit limits for Apple Card users on a case-by-case basis for those who’ve received lower limits than expected.

“We have not and never will make decisions based on factors like gender,” Carey Halio, Goldman’s retail bank CEO, said in a statement. “In fact, we do not know your gender or marital status during the Apple Card application process.”…Read more>>

 

Source:-cnbc