Senators Elizabeth Warren and Sherrod Brown are calling on the Consumer Financial Protection Bureau (CFPB) to perform an Apple Card probe because of perceived gender bias (via AppleInsider).
Apple Card Probe
Earlier this month David Hansson noticed he had a bigger credit limit than his wife did, even though she had a better credit score. He accused Goldman Sachs of gender bias in its algorithms for the Apple Card. Ms. Warren and Ms. Brown wrote a letter calling for the CFPB to investigate.
These public reports raise questions on whether there is a pattern of sex discrimination in the underwriting of the Apple Card, and underscore the importance of the CFPB adequately monitoring the lending practices of financial institutions, including those like Goldman Sachs, that are new to the consumer lending space.
Because the Bureau determines its examination schedule based on an assessment of the risks to consumers, it is not clear how the Bureau evaluates such risks for new lenders or new products. For example, the CFPB’s Supervision and Examination Process Manual does not specify if the Bureau considers novel products or institutions that have previously never offered consumer products inherently risky.
Goldman Sachs issued a statement after the complaint, saying that all scores are individually calculated.