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Apple Card Being Investigated For Alleged Gender Discrimination

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A New York regulator has launched an investigation into the credit card practices of Goldman Sachs Group Inc. for alleged gender discrimination in determining limits for Apple's new credit card, which is administered by Goldman Sachs.

The Apple Card, Apple's first credit card, was introduced by the tech giant in March this year in partnership with Goldman Sachs and Mastercard. The card was rolled out to all U.S. customers in August.

The New York Department of Financial Services initiated a probe after a series of viral tweets by tech entrepreneur and web developer David Heinemeier Hansson about algorithms used for the Apple Card.

Hansson said the Apple Card gave him a credit limit 20 times greater than that of his wife, even though they have shared assets and she has a higher credit score. He called the algorithm a sexist program.

Hansson also tweeted that when approached Apple in an attempt to rectify this, he was told that credit limits are determined by an algorithm. Hansson is the creator of the 'Ruby on Rails' web application framework.

The tweets immediately went viral and were supported by Apple co-founder Steve Wozniak, who said he had a similar experience. He said that both Goldman Sachs and Apple should share responsibility for the Apple Card algorithms.

The allegations prompted a response from Linda Lacewell, the Superintendent of New York State Department of Financial Services. Lacewell said her department would examine whether the algorithm used to make these credit limit decisions violates state laws that prohibit discrimination on the basis of sex.

In response to the allegations, Goldman Sachs reportedly said the bank evaluates each individual's application for a credit card independently, based on factors such as his personal credit scores and how his debt has been managed. The bank added that it has not and will not make credit decisions based on factors like gender.

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