Apple Card already cost Goldman Sachs billions of dollars

Up_And_Away

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Aug 27, 2021
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GS will have accrued startup losses. But My understanding is Banks or institutions lose money on issuing credit cards because of debt write off. John Doe has 5000 in credit card debt, he stops paying it, eventually the bank or institution sells the debt for a dime on the dollar to a specialized collection agency.
They all know that they’ll do some debt write off. But their approval algorithms make sure, or should, to approve just the right mix of applicants for profitability. So This could be the case of Goldman Sachs algorithms not being good enough.
 

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