New York regulator finds no fair violation of loans on Apple card apps
The New York State Department of Financial Services said it found no evidence of discrimination in credit card applications initiated by Apple. Inc.
and Goldman Sachs Group Inc.
but stressed the need to update credit scoring models and anti-discrimination laws on access to credit.
“Although we found no breach of loan equity, our investigation recalls the disparities in access to credit that persist nearly 50 years after the adoption of the Equal Credit Opportunity Act. Said Linda Lacewell, Superintendent of Financial Services.
The department’s investigation, which followed a public review after Apple co-founder Steve Wozniak said his wife had received significantly different credit card terms than its own, examined underwriting data for approximately 400,000 Apple Card applications in New York State, as well as a series of interviews, records and written responses from the Goldman Sachs Bank and Apple.
The department said the investigation found that for all consumers who reported concerns about their Apple Card credit, “the evidence showed that these decisions were explainable, legal, and consistent with the Bank’s credit policy. “.
However, the ministry said, shortcomings in customer service and a perceived lack of transparency have undermined consumer confidence in fair credit decisions.
The department, in a report released Tuesday, said Goldman Sachs and Apple have since taken steps to improve transparency and help refused applicants improve their credit. Companies, he said, had also changed a policy that previously required approved applicants to wait six months before appealing credit terms, such as credit limits and annual percentage rates.
Write to Maria Armental at [email protected]
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