Consumer complaint received 2025-02-04 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: GOLDMAN SACHS BANK USA
State: TX

Complaint narrative:
I am writing to file a complaint against GM MARCUS CREDIT, Goldman Sachs Bank regarding their adverse action on my business and personal credit card loan application. I believe their decision may violate the Equal Credit Opportunity Act ( ECOA ) and related regulations.

The adverse action letter provided the following reasons for denial : 1. " Application 's business industry is ineligible for a lender 's credit product. '' 2. " Lack of establishment earnings record or earnings insufficient for the amount of credit requested. '' These reasons appear insufficient and may not comply with ECOA requirements for transparency and clarity [ 5 ]. I believe they may not fully explain the circumstances of my application and could suggest discriminatory practices or failure to follow proper non-discriminatory procedures as required by law [ 1 ] [ 5 ].

Specifically, I believe GM MARCUS CREDIT Goldman Sachs Bank 's actions may violate : - 15 U.S.C. 1691c ( Equal Credit Opportunity Act Notification of Adverse Action ) - 15 U.S.C. 1691 ( Discrimination Prohibited ) - 15 U.S.C. 1681m ( Duties of Creditors Regarding Adverse Action ) - 12 CFR 1002.9 ( Regulation B Adverse Action Notifications ) - 12 CFR 1002.7 ( Rules Concerning Extensions of Credit ) The ECOA prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of rights under the Consumer Credit Protection Act [ 2 ] [ 5 ]. The law requires creditors to provide specific reasons for credit denials and to evaluate applicants based solely on their creditworthiness [ 5 ].

As per 12 CFR 1002.7, I would like to bring the following points to your attention : Section ( a ) : A creditor shall not refuse to grant an individual account to a creditworthy applicant based on sex, marital status, or any other prohibited basis. I believe that the denial of my loan may be based on factors not related to my actual creditworthiness, which raises concerns of discrimination under this regulation.

Section ( b ) : A creditor shall not refuse to allow an applicant to open or maintain an account using their birth-given first name and surname, or a surname from the applicants spouse or a combined surname. While this may not directly apply in this case, it further demonstrates the principles of non-discrimination that GM MARCUS CREDIT Goldman Sachs Bank should be adhering to in all decisions related to credit applications.

Section ( c ) : Concerning existing open-end accounts, a creditor shall not take adverse action based on an applicants reaching a certain age, retirement, or a change in their name or marital status, unless there is evidence of the applicants inability or unwillingness to repay. I believe that no such evidence was provided to support the decision to deny my loan, suggesting that the refusal might have been based on factors unrelated to my ability to repay.

Additionally, I must express concern regarding the use of my personal financial information, including my Social Security number which is a different type of credit card. Should this information have been utilized without granting credit or providing any benefit, I believe this constitutes a violation of the Fair Credit Reporting Act ( FCRA ), specifically 15 U.S.C. 1681n ( willful noncompliance ) and 15 U.S.C. 1681o ( negligent noncompliance ) as this was a CONSUMER CREDIT TRANSACTION when the application was submitted.

Texas Consumer Rights Point 8 : Right to Fair Treatment As a resident of Texas, I am also entitled to fair treatment as outlined in the Texas Consumer Rights Act, particularly under Texas Business and Commerce Code, Section 14.002. Point 8 of this Act specifically guarantees the right to be treated fairly and to not face discriminatory practices in any business transaction, including credit applications. In this instance, the lack of clarity and the potentially discriminatory reasoning provided for the denial of my loan application may infringe upon this right, as it does not seem to fully reflect a fair, impartial, and non-discriminatory decision-making process.

I expect GM MARCUS CREDIT Goldman Sachs Bank to adhere to the standards of fair treatment under Texas law and resolve this matter accordingly.

Explanation of Relevant USC Laws The following provisions of the United States Code ( USC ) are particularly relevant to my situation and should be considered : 15 U.S.C. 1691 ( Equal Credit Opportunity Act Discrimination Prohibited ) : This provision of the ECOA prohibits creditors from discriminating against credit applicants based on race, color, religion, national origin, sex, marital status, or age ( except in certain cases ), and requires creditors to evaluate applications based on the applicants creditworthiness, not arbitrary or discriminatory factors. If my loan was denied due to any of these discriminatory factors or without sufficient reason, this provision would be violated.

15 U.S.C. 1691c ( Notification of Adverse Action ) : According to this section, a creditor must provide a specific, written notice detailing the reasons for the adverse action when a credit application is denied. The reason must be clear and adequate for the applicant to understand why they were denied credit. The denial reasons in your correspondence, while provided, are vague and may not meet the level of specificity required by law.

15 U.S.C. 1681m ( Duties of Creditors Regarding Adverse Action ) : This provision outlines that when an adverse action is taken based on a consumer 's credit report, creditors are required to provide a notification of such action. The notification must include a summary of the consumer 's rights under the Fair Credit Reporting Act ( FCRA ) and must disclose the credit score and other pertinent information if it played a role in the decision. If my personal financial data was used inappropriately, or the adverse action was taken without appropriate explanation, this provision may have been violated.

15 U.S.C. 1681n ( Willful Noncompliance with FCRA ) : This provision allows for the pursuit of damages when a creditor willfully fails to comply with the requirements of the Fair Credit Reporting Act. If GM MARCUS CREDIT Goldman Sachs Bank has misused my financial data or failed to provide a valid reason for the adverse action, I may be entitled to seek damages.

15 U.S.C. 1681o ( Negligent Noncompliance with FCRA ) : Similarly, this section provides for damages when a creditor negligently fails to comply with FCRA. This provision may apply if GM MARCUS CREDIT Goldman Sachs Bank has acted in negligence regarding the handling of my credit information or the denial process.

12 CFR 1002.7 ( Rules Concerning Extensions of Credit ) : Under 12 CFR 1002.7, creditors are prohibited from denying credit based on sex, marital status, or any other prohibited basis. I believe that GM MARCUS CREDIT Goldman Sachs Bank may have acted in violation of this regulation by denying my loan based on factors unrelated to my ability to repay or my creditworthiness.

Company response to consumer: Closed with explanation