Tensions rise over Apple Card as Goldman Sachs asserts control

Tensions rise over Apple Card as Goldman Sachs asserts control
Like basically every other Apple product, the Apple Card was marketed as a product created entirely to the company’s specifications. It’s reflected in the slogan, too: “Created by Apple, not a bank”.

Except the Apple Card does, of course, need the infrastructure of a financial institution in order to operate, and that institution is Goldman Sachs, the bank Apple collaborated with to create the Card. And according to the bank, the Apple Card was and is controlled by Goldman Sachs, not the iPhone maker, despite what the latter may claim.

As Business Insider reported, Goldman Sachs states that, though the card was designed with Apple’s goals, the “ultimate decision” is always with them. The bank is the one shouldering the risk, and thus it makes the final call on important matters like approving credit lines and collecting debt.

Since its inception, the Apple Card has enjoyed much popularity for its clear terms and generous rewards on Apple products, but it’s also received a lot of backlash. Last November, issues of discrimination over the application process were raised concerning the seemingly-sexist algorithm used by Goldman Sachs.

Whatever the case may be, it’s more evident that Apple’s entry into financial services was not free of issues. Even though the shiny titanium Apple Card may bear the classic fruit logo, it’s not the only company involved. And Goldman Sachs wants you to know.

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21 Comments

12. Tsepz_GP

Posts: 1227; Member since: Apr 12, 2012

Apple need to let us know when they are “testing the waters”, as it sounds as though that’s exactly what’s happening here. This is almost like that Motorola iTunes phone all over again. Something Apple learns time and time again is that when they want to get something done right they need to do it themselves and not partnerships.

23. izim1

Posts: 1622; Member since: Feb 04, 2013

Apple has never done anything themselves... not even the iphone is done by apple themselves. What are you talking about?

7. Charlie2k

Posts: 178; Member since: Jan 11, 2016

Ok... Let's be serious. Why would anyone even want the Apple card? The terms are really lousy, except that some religious people value the Apple logo insanely high. But everything else about the card is bad, even the quality of the card is following classic poor Apple-quality and gets easily scratched.

8. gadgetpower

Posts: 335; Member since: Aug 23, 2019

Bitter because you cannot have one...android user.

15. ijuanp03

Posts: 717; Member since: Dec 30, 2014

You didn't answer his question. Can't think of any?

16. TBomb

Posts: 1772; Member since: Dec 28, 2012

People who don't realize this but just want a shiny metal credit card to wave aroudn and the convenience of having it all on your phone is who they are after. After you get the benefits like 3% off apple products, or whatever it is, then the people are even deeper in the ecosystem. It's more about getting people deeper so it's harder to leave than anything else.

18. cevon3239

Posts: 217; Member since: Jan 01, 2020

Well platinum is a porous metal, so it is actually very easy to damage because it is soft. Aluminum I'd also porous, making it soft and thus easier to damage. That doesn't mean its low quality. Not all metals are resistance to damage, just like glass. Also credit that are not owned by the name on the card is always a bad deal. Lots of retailers like Sears who once backed it's own store card, sold it to Citibank because they need money.

21. KParks23

Posts: 750; Member since: Oct 13, 2010

Agree the card is pretty trash the rewards suck. The Citi double cash and Wells Fargo Propel are way better cards!

6. cmdacos

Posts: 4421; Member since: Nov 01, 2016

Apple's support of criminals transcends to their business partners too...

5. MsPooks

Posts: 369; Member since: Jul 08, 2019

"Goldman Sachs may have invented banking, but Apple made it better." - Tim Apple

10. NateDiaz

Posts: 1094; Member since: Mar 03, 2018

Oh look MsPooks got jokes

1. phoneguynh

Posts: 34; Member since: Oct 31, 2018

Goldman Sachs still discriminates! I applied for the card and they told me I was “recently past due” - only problem with that is I have 100% payment history. I called Goldman Sachs and all they did was tell me to call TransUnion. I escalated so high in TransUnion and they said Goldman Sachs wasn’t getting the info from them as my file was fine. I escalated through Apple and they told me they couldn’t do anything as Goldman controls the card. They get info on you from other sources without telling you. I have clean records everywhere... so what are they not telling us as consumers?

2. ijuanp03

Posts: 717; Member since: Dec 30, 2014

"The bank is the one shouldering the risk, and thus it makes the final call on important matters like approving credit lines and collecting debt." Blame Apple. They gave relevant information to Goldman Sachs

3. phoneguynh

Posts: 34; Member since: Oct 31, 2018

The problem is they listed TransUnion as they place they got my info from but it’s not. They are not even telling people were they got my info from to make a decision on applicants. My sister who has three charge offs and collection accounts got approved for $3800 limit but myself who has great history and no collections and low balances got rejected for recently past due even though all my reports do not state that. It’s very interesting. I have cards with leading banks such as capital one, American Express, and Discover but Apple Card seems to be on a whole other level.

4. phoneguynh

Posts: 34; Member since: Oct 31, 2018

I would love to know what the phonearena authors know about Goldman’s information gathering methods. I’ve been kinda low key researching this for months but come up with dead ends.

14. MikeG77

Posts: 430; Member since: Nov 24, 2008

There are many factors that go into someone being approved/declined as well as how much of a credit limit a person gets. In your sister case she should not have been approved for an Apple card especially if she has all the issues you mentioned. I think the issue you're having is that you had the past due and now you're trying to acquire more credit which is usually a red flag. Granted i understand life happens but when someone has a late on their credit history ( i would like to know how they found out about the late payment so quickly) especially recently a bank will be less likely to approve you for a new line of credit.

17. tedkord

Posts: 17529; Member since: Jun 17, 2009

He said he had a 100% on time history through TU (which they claim they based their decision on). And it sounded like he was claiming no delinquencies on any of the 3 bureaus.

19. MikeG77

Posts: 430; Member since: Nov 24, 2008

If you read his second comment he mentions he had a recent past due. I also asked the question if it was a recent past due then how did Goldman Sachs know about it if Trans Union did not advise them of it or had no record of it. Now if he has a 100% payment history then he needs to file a dispute so whatever misinformation is on there doesn't cause futher issues. The whole issue just seems fishy!

20. KParks23

Posts: 750; Member since: Oct 13, 2010

You'll get a letter in the mail stating where they pulled your credit from. That card is trash anyway your better off not having it the rewards suck!

24. elkym111

Posts: 1; Member since: Jan 25, 2020

They also use Sage Stream. Look into that.

22. izim1

Posts: 1622; Member since: Feb 04, 2013

So because you couldn't get one, that means they discriminate? Is your sister a different race as you, or do you mean they discriminate by gender?

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