On Saturday, a New York financial regulator said that it was investigating claims of gender discrimination on the new credit card of tech giant Apple. Meanwhile, the investigation includes its issuer, Goldman Sachs.
However, it decided to initiate the investigation after a cardholder’s tweet about his wife’s credit limit went viral.
American businessman, David Hansson, tweeted on Thursday that the Apple Card was a sexist program.
Additionally, he said that the card’s “black box” algorithm had given him 20 times the credit limit of his wife.
He lamented that it happened even when they filed joint tax returns and she had a higher credit score.
Hansson tweeted a series of messages recounting fruitless chats with Apple customer service agents.
According to him, they were unable to explain the disparity but blamed it on the algorithm that determines an applicant’s credit-worthiness.
However, a black box algorithm refers to artificial intelligence systems whose decisions cannot be explained.
In March, Apple started offering the apple card, while banking giant Goldman Sachs issued it.
New York state regulators will be conducting an investigation to determine whether the Apple card had violated the New York law.
Furthermore, it will also ensure all consumers’ equality regardless of sex.
On the other hand, Goldman spokesman said that they make their credit decisions on customers’ creditworthiness. And that it does not focus on factors like gender, race, and age.