Consumer complaint received 2023-01-06
Company: GOLDMAN SACHS BANK USA
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Getting a credit card
Sub-issue: Application denied

Complaint:
I am writing to file a complaint against Goldman Sachs, the issuer of the Apple Card, in relation to the false and misleading information provided in connection with my credit card application on XXXX XXXX XXXX.

On multiple occasions, Goldman Sachs has denied my credit card application, stating that the reason for the denial was a "prior history of delinquent or derogatory accounts." However, I have provided documentation and information that contradicts this statement about my credit history. The dates of these denials were XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, twice on XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX.

I believe that Goldman Sachs has violated the Truth in Lending Act (TILA) and other consumer protection laws by providing false or misleading information in connection with my credit card application. I am seeking a resolution to this matter and obtaining a correction from Goldman Sachs.

Furthermore, on XXXX XXXX XXXX, I sent a correspondence to Goldman Sachs regarding this issue, which they signed and acknowledged receipt of. Despite this, Goldman Sachs has continued to deny my credit card application and provide false and misleading information.

The definition of "set-off" refers to a defense to all or a part of a plaintiff's monetary claim. In this case, Goldman Sachs may be using the false and misleading information about my credit history as a defense to my claim for a credit card account. This could potentially be seen as a violation of TILA and other consumer protection laws, as lenders are not allowed to use false or misleading information as a defense to a consumer's claim for an extension of credit.

Additionally, the definition of "consumer" under TILA includes a natural person to whom consumer credit is offered or extended, as well as a natural person in whose principal dwelling a security interest is or will be retained or acquired if their ownership interest in the dwelling is subject to the security interest. As a consumer who applied for a credit card and has been denied based on false and misleading information, I may be able to argue that Goldman Sachs has violated TILA and other consumer protection laws by failing to disclose accurate and complete information to me as a consumer.

As a result of Goldman Sachs' actions, I have been denied access to credit, which has had a negative impact on my financial situation. I have been unable to make important financial decisions and purchases because of this denial, and it has caused stress and frustration. I am seeking a resolution to this matter and obtaining a correction from Goldman Sachs.

I would like to request that this matter is promptly addressed and that Goldman Sachs is held accountable for their actions. I am available to provide any further information or documentation that may be necessary to support my complaint.





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Legal Definitions
Adjustments
Adjustment is a settlement, allowance, or deduction made on a debt or claim that has been objected to by a debtor or creditor in order to establish an equitable arrangement between the parties.
For tax returns, an IRS-approved change to tax liability is considered an adjustment.
When money is owed to a lender, debt adjustments are made by creditors or judges who exempt debtors from a part of their obligation, in light of ongoing circumstances; like insolvency.
In insurance law, an insurance companys settlement on a claim is referred to as an adjustment. The companys adjustment reflects the sum of money the company is willing to pay on behalf of a claimant after negotiation and consideration of the parties gains, losses, and rights.
Set-offs, contributions, and subrogation are also examples of adjustments.
A set-off is a statutory defense to all or a part of a plaintiffs monetary claim. It also refers to the adjustment of losses against profit or income by a taxpayer in a particular tax year.
A contribution is a payment made between defendants with joint and several liabilities in order to apportion, or adjust, for liability. Subrogation is the substitution of one person or group in the place of another with reference to a lawful claim, demand, or right, whereby the subrogating party assumes the rights and duties of the original party. Setoff 1. The right of someone who owes money to subtract from the debt any money owed in the other direction. 2. A defedant's monetary demand against the plaintiff for some injury unrelated to the plaintiff's claim. Account An account, within the context of secured transactions, is defined under Article 9 of the Uniform Commercial Code, as a right to payment of a monetary obligation. Not included: (1) letters of credit, (2) commercial tort claims, (3) deposit accounts, (4) investment property, (5) chattel paper, or (6) rights to payment for money or funds that have been advanced or sold. (2) the term account means a demand deposit, savings deposit, or other asset account (other than an occasional or incidental credit balance in an open end credit plan as defined in section 1602(i) of this title), as described in regulations of the Bureau, established primarily for personal, family, or household purposes, but such term does not include an account held by a financial institution pursuant to a bona fide trust agreement; Source 15 USC 1693a(2) 12 CFR Part 1026 (Regulation Z) 1026.2 Definitions and rules of construction 1026.2(a)(3)(i) (i) Application means the submission of a consumer's financial information for the purposes of obtaining an extension of credit. (ii) For transactions subject to 1026.19(e), (f), or (g) of this part, an application consists of the submission of the consumer's name, the consumer's income, the consumer's social security number to obtain a credit report, the property address, an estimate of the value of the property, and the mortgage loan amount sought. 1026.2(a)(8) (8) Cardholder means a natural person to whom a credit card is issued for consumer credit purposes, or a natural person who has agreed with the card issuer to pay consumer credit obligations arising from the issuance of a credit card to another natural person. For purposes of  1026.12(a) and (b), the term
includes any person to whom a credit card is issued for any purpose, including business, commercial or agricultural use, or a person who has agreed with the card issuer to pay obligations arising from the issuance of such a credit card to another person.

 1026.2(a)(11)
(11) Consumer means a cardholder or natural person to whom consumer credit is offered or extended. However, for purposes of rescission under
 1026.15 and 1026.23, the term also includes a natural person in whose principal dwelling a security interest is or will be retained or acquired, if that
person's ownership interest in the dwelling is or will be subject to the security interest. For purposes of  1026.20(c) through (e), 1026.36(c), 1026.39, and 1026.41, the term includes a confirmed successor in interest.

 1026.2(a)(12)
(12) Consumer credit means credit offered or extended to a consumer primarily for personal, family, or household purposes.

 1026.2(a)(15)(i)
(i) Credit card means any card, plate, or other single credit device that may be used from time to time to obtain credit. The term credit card includes a hybrid prepaid-credit card as defined in  1026.61.
(iv) Debit card means any card, plate, or other single device that may be used from time to time to access an asset account other than a prepaid account as defined in  1026.61. The term debit card does not include a prepaid card as defined in  1026.61.

Credit
Credit means the right granted by a creditor to an applicant to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment therefor.

consumer credit
Consumer credit refers to the ability of a consumer to access a loan. The most common form of credit used by consumers is a credit card account issued by a financial institution. Merchants may also provide direct financing for products which they sell. Banks may directly finance purchases through loans and mortgages.

The law of consumer credit is primarily embodied in federal and state statutes. These laws protect consumers and provide guidelines for the credit industry.

States have passed various statutes regulating consumer credit. For example, the Uniform Consumer Credit Code (UCCC) has been adopted as law in eleven states and Guam. Its purpose is to protect consumers obtaining credit transactions and ensure that adequate credit is available. To do this, the UCCC includes provisions outlawing waiving rights through contracts and sets caps on interest rates. 

In 1968, Congress passed the Consumer Credit Protection Act to further regulate the consumer credit industry. This act requires loan providers to explain financial terms to consumers, restricts the garnishing of wages, prohibits discrimination on the basis of sex or marital status, and established the National Commission on Consumer Finance to investigate the consumer finance industry. While this commission has since disbanded, credit card companies and credit reporting agencies are still regulated by the Act.

In XXXX  XXXX, President Obama signed into law the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act. This statute even further constrained the practices of financial institutions that issue consumer credit cards. These new regulations include bans on practices such as charging interest on balances that have already been paid off, hiking interest rates without notice, and marketing towards college students. Additionally, the act requires interest rates on consumer credit instruments to remain static for at least one year after the consumer obtains it. Most notably, however, the CARD act contains provisions regulating the use of credit default swaps and increased penalties for noncompliance with federal credit regulations. 

Federal Material

U.S. Constitution and Federal Statutes

Consumer Credit Protection Act - 15 U.S.C, Chapter 41
Truth In Lending Act - 15 U.S.C.  1601
Fair Credit Reporting Act - 15 U.S.C.  1681
Fair Credit Billing Act - 15 U.S.C.  1637
Equal Credit Opportunity Act - 15 U.S.C.  1691 - 1691e
The Fair Credit Debt Collection Act - 15 U.S.C.  1692 - 1692o
CRS Annotated Constitution
Federal Agency Regulations

Code of Federal Regulations: 12 C.F.R. - Banks and Banking
Federal Judicial Decisions

U.S. Supreme Court:
Recent Decisions on Consumer Credit
liibulletin Oral Argument Previews
U.S. Circuit Courts of Appeals: 
Recent Decisions on Consumer Credit
State Material

State Statutes Uniform Commercial Code - (As Adopted by Particular States) Uniform Consumer Credit Code New York law governing Unauthorized or Improper Use of Credit Cards and Debit Cards - New York General Business Law Article 29-A 511 et seq. New York law governing Debt Collection Procedures - New York General Business Law Article 29-H 600 et seq. New York law governing Consumer Credit Balances - New York General Business Law Article 34-A 710 et seq. California law governing credit cards and various other aspects of consumer credit - California Civil Code 1747 et seq. California law governing fees in consumer credit agreements and related consumer protections - California Financial Code 4000 et seq. State Judicial Decisions N.Y. Court of AppealsXXXX  Decisions on Consumer Credit
Commentary from liibulletin-ny
Appellate Decisions from Other States
Key Internet Sources

Consumer Financial Protection Bureau
U.S. Federal Trade Commission
National Foundation for Credit Counseling
Consumer Credit Guide
House Committee on Banking and Financial Services (includes information from Subcommittee on Financial Institutions and Consumer Credit)
ILRG Legal Forms Archive: Credit and Collection, Borrowing and Lending

 1002.2 Definitions.

For the purposes of this part, unless the context indicates otherwise, the following definitions apply. 

(a) Account  means an extension of credit. When employed in relation to an account, the word use refers only to open-end credit. 

(b) Act  means the Equal Credit Opportunity Act (Title VII of the Consumer Credit Protection Act). 

(c) Adverse action. 

(1) The term means: 

(i) A refusal to grant credit in substantially the amount or on substantially the terms requested in an application unless the creditor makes a counteroffer (to grant credit in a different amount or on other terms) and the applicant uses or expressly accepts the credit offered; 

(ii) A termination of an account or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditor's accounts; or 

(iii) A refusal to increase the amount of credit available to an applicant who has made an application for an increase. 

(2) The term does not include: 

(i) A change in the terms of an account expressly agreed to by an applicant; 

(ii) Any action or forbearance relating to an account taken in connection with inactivity, default, or delinquency as to that account; 

(iii) A refusal or failure to authorize an account transaction at point of sale or loan, except when the refusal is a termination or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditor's accounts, or when the refusal is a denial of an application for an increase in the amount of credit available under the account; 

(iv) A refusal to extend credit because applicable law prohibits the creditor from extending the credit requested; or 

(v) A refusal to extend credit because the creditor does not offer the type of credit or credit plan requested. 

(3) An action that falls within the definition of both paragraphs (c)(1) and (c)(2) of this section is governed by paragraph (c)(2) of this section. 

(d) Age  refers only to the age of natural persons and means the number of fully elapsed years from the date of an applicant's birth. 

(e) Applicant  means any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit. For purposes of  1002.7(d), the term includes guarantors, sureties, endorsers, and similar parties. 

(f) Application  means an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested. The term application does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a creditor has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The creditor shall exercise reasonable diligence in obtaining such information. 

(g) Business credit  refers to extensions of credit primarily for business or commercial (including agricultural) purposes, but excluding extensions of credit of the types described in  1002.3(a)-(d). 

(h) Consumer credit  means credit extended to a natural person primarily for personal, family, or household purposes. 

(i) Contractually liable  means expressly obligated to repay all debts arising on an account by reason of an agreement to that effect. 

(j) Credit  means the right granted by a creditor to an applicant to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment therefor. 

(k) Credit card  means any card, plate, coupon book, or other single credit device that may be used from time to time to obtain money, property, or services on credit. 

(l) Creditor  means a person who, in the ordinary course of business, regularly participates in a credit decision, including setting the terms of the credit. The term creditor includes a creditor's assignee, transferee, or subrogee who so participates. For purposes of  1002.4(a) and (b), the term creditor also includes a person who, in the ordinary course of business, regularly refers applicants or prospective applicants to creditors, or selects or offers to select creditors to whom requests for credit may be made. A person is not a creditor regarding any violation of the Act or this part committed by another creditor unless the person knew or had reasonable notice of the act, policy, or practice that constituted the violation before becoming involved in the credit transaction. The term does not include a person whose only participation in a credit transaction involves honoring a credit card. 

(m) Credit transaction  means every aspect of an applicant's dealings with a creditor regarding an application for credit or an existing extension of credit (including, but not limited to, information requirements; investigation procedures; standards of creditworthiness; terms of credit; furnishing of credit information; revocation, alteration, or termination of credit; and collection procedures). 

(n) Discriminate against an applicant  means to treat an applicant less favorably than other applicants. 

(o) Elderly  means age 62 or older. 

(p) Empirically derived and other credit scoring systems  - 

(1) A credit scoring system  is a system that evaluates an applicant's creditworthiness mechanically, based on key attributes of the applicant and aspects of the transaction, and that determines, alone or in conjunction with an evaluation of additional information about the applicant, whether an applicant is deemed creditworthy. To qualify as an empirically derived, demonstrably and statistically sound, credit scoring system, the system must be: 

(i) Based on data that are derived from an empirical comparison of sample groups or the population of creditworthy and non-creditworthy applicants who applied for credit within a reasonable preceding period of time; 

(ii) Developed for the purpose of evaluating the creditworthiness of applicants with respect to the legitimate business interests of the creditor utilizing the system (including, but not limited to, minimizing bad debt losses and operating expenses in accordance with the creditor's business judgment); 

(iii) Developed and validated using accepted statistical principles and methodology; and 

(iv) Periodically revalidated by the use of appropriate statistical principles and methodology and adjusted as necessary to maintain predictive ability. 

(2) A creditor may use an empirically derived, demonstrably and statistically sound, credit scoring system obtained from another person or may obtain credit experience from which to develop such a system. Any such system must satisfy the criteria set forth in paragraph (p)(1)(i) through (iv) of this section; if the creditor is unable during the development process to validate the system based on its own credit experience in accordance with paragraph (p)(1) of this section, the system must be validated when sufficient credit experience becomes available. A system that fails this validity test is no longer an empirically derived, demonstrably and statistically sound, credit scoring system for that creditor. 

(q) Extend credit  and extension of credit mean the granting of credit in any form (including, but not limited to, credit granted in addition to any existing credit or credit limit; credit granted pursuant to an open-end credit plan; the refinancing or other renewal of credit, including the issuance of a new credit card in place of an expiring credit card or in substitution for an existing credit card; the consolidation of two or more obligations; or the continuance of existing credit without any special effort to collect at or after maturity). 

(r) Good faith  means honesty in fact in the conduct or transaction. 

(s) Inadvertent error  means a mechanical, electronic, or clerical error that a creditor demonstrates was not intentional and occurred notwithstanding the maintenance of procedures reasonably adapted to avoid such errors. 

(t) Judgmental system of evaluating applicants  means any system for evaluating the creditworthiness of an applicant other than an empirically derived, demonstrably and statistically sound, credit scoring system. 

(u) Marital status  means the state of being unmarried, married, or separated, as defined by applicable state law. The term unmarried includes persons who are single, divorced, or widowed. 

(v) Negative factor or value,  in relation to the age of elderly applicants, means utilizing a factor, value, or weight that is less favorable regarding elderly applicants than the creditor's experience warrants or is less favorable than the factor, value, or weight assigned to the class of applicants that are not classified as elderly and are most favored by a creditor on the basis of age. 

(w) Open-end credit  means credit extended under a plan in which a creditor may permit an applicant to make purchases or obtain loans from time to time directly from the creditor or indirectly by use of a credit card, check, or other device. 

(x) Person  means a natural person, corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association. 

(y) Pertinent element of creditworthiness,  in relation to a judgmental system of evaluating applicants, means any information about applicants that a creditor obtains and considers and that has a demonstrable relationship to a determination of creditworthiness. 

(z) Prohibited basis  means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act or any state law upon which an exemption has been granted by the Bureau. 

(aa) State  means any state, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States.

delinquent
Primary tabs
The word delinquent may have several meanings for the law depending on the context, such as the following:

A natural person or entity failing to perform an obligation. For example, a tenant who is delinquent in rental payments or a corporation that is delinquent in loan repayments.
A natural person that is guilty of committing criminal conduct. For example, a juvenile delinquent that committed a crime.
An obligation past due or unperformed. For example, a delinquent tax.

fraud
Primary tabs
Fraud is both a civil tort and criminal wrong. 

In civil litigation, allegations of fraud might be based on a misrepresentation of fact that was either intentional or negligent.  For a statement to be an intentional misrepresentation, the person who made it must either have known the statement was false or been reckless as to its truth.  The speaker must have also intended that the person to whom the statement was made would rely on it.  The hearer must then have reasonably relied on the promise and also been harmed because of that reliance. 

A claim for fraud based on a negligent misrepresentation differs in that the speaker of the false statement may have actually believed it to be true; however, the speaker lacked reasonable grounds for that belief. 

A promise that goes unfulfilled may give rise to a claim for fraud only under particular circumstances.  For example, in California law, a false promise is only fraudulent if the promisor intended both not to perform on the promise and also that that the promisee would rely on the promise; and, the promisee must have reasonably relied on the promise and been harmed as a result of that reasonable reliance.  When the promise was made as part of a contract, most states forbid a plaintiff from recovering under both contract law and tort law.

Lastly, opinions are not usually actionable as fraud except under very specific circumstances defined by either the common law or statutes in each state.  In California, for example, a jury may be instructed that an opinion can be considered a representation of fact if it is proven that the speaker claimed to have special knowledge of the subject matter that the listener did not have; OR that the representation was made not in a casual expression of belief, but in a way that declared the matter to be true; OR if the speaker was in a position of trust and confidence over the listener; OR if the listener had some other special reason to expect the speaker to be reliable.  Once the jury decides that an opinion qualified as a misrepresentation of fact under the circumstances, the plaintiff must still demonstrate all of the other elements of an intentional or negligent misrepresentation already described, such as reasonable reliance and resulting harm.

In criminal law, fraud usually takes very specific forms, such as bankruptcy fraud, credit card fraud, or healthcare fraud. California law, for example, also recognizes distinct crimes for check fraud, access card fraud, insurance fraud, and making false financial statements.  Some criminal fraud statutes might be classified under laws forbidding larceny, others under forgery, and others as a crime covered by laws regarding a specific industry, like insurance or banking laws.  Suspicions of criminal fraud should be reported to law enforcement authorities.

deception
Primary tabs
Deception is the act of deliberately causing somebody to accept something as true that is not true. It is an action that hides the truth.  

Ohio defines deception as knowingly deceiving another or causing another to be deceived by any false or misleading representation, by withholding information, by preventing another from acquiring information, or by any other conduct, act, or omission that creates, confirms, or perpetuates a false impression in another, including a false impression as to law, value, state of mind, or other objective or subjective fact" in Section 2913.01 of its criminal code.

Some common uses of the term deception in a legal sense include:

In the context of theft by deception, cases such as this one from District of Columbia, explain that the term deception includes any act or communication made by the defendant which he knows to be untrue or false, including any misrepresentation as to the future, as well as the past or present.
In the context of statute prohibiting unfair and deceptive trade practices, cases such as this one from Florida, explain that deception occurs if there is a representation, omission, or practice that is likely to mislead the consumer acting reasonably in the circumstances, to the consumer's detriment.

Company response to consumer: Closed with explanation