Goldman Sachs Group didn’t use discriminatory practices when deciding whether to extend credit to prospective customers of its Apple Card, said the New York State Department of Financial Services.
“While we found no fair lending violations, our inquiry stands as a reminder of disparities in access to credit that continue nearly 50 years after the passage of the Equal Credit Opportunity Act,” Superintendent of Financial Services Linda A. Lacewell said in a statement Tuesday.
The regulator in November 2019 announced it would open an inquiry into Goldman’s credit card practices after a viral tweet from a tech entrepreneur alleged gender discrimination in the then-new Apple Card’s algorithms when determining credit limits.
The department did fault Goldman for “deficiencies in customer service” and said that “a perceived lack of transparency undermined consumer trust in fair credit decisions.”
