Your car and your credit

Still, pressure from consumer groups that led many states to limit, as self-insurers people use credit history.

Many laws of the state on the model law on the use of credit insurance people in the information written by the National Conference of Insurance members of the legislative body, an organization whose main concern is the insurance legislation and regulation. It creates the model law on the prevention of insurance credit scoring as the sole basis for the refusal, revocation or not to extend or policy of raising tax rates.

Starting from June 2006, 48 states had some form of laws or regulations share, a Prohibitions or Restrictions on the use of credit scores, said the FTC. For example, Georgia, Illinois and prohibit Utah, with information on credit history as the sole basis for insurance rating or decisions. Oregon prohibits the use of banks of information on the history terminate or not renew existing customers, policies or increase their prices, Maryland and prohibits the use history of credit, subscription or ‘assessment of customers.

Of course, he agrees that consumers practices of good financial habits, such as paying their bills on time and limiting their use of credit. But someone has to pay more auto insurance, because he or she has lost a job and could not pay his credit card?

“Insurance premiums should focus on the risk of an accident, not record consumers pay for other goods and services,” said Norma Garcia, a lawyer with leaders of Consumers Union.

After reviewing all research and industry input, and after consultation with 200 public comments, the FTC has not yet determined why there is correlation between low credit scores and a greater probability that someone One is a roster of auto insurance.

If you do not know why, as you know, the practice is fair and impartial?

Harbour FTC said Commissioner of the Agency omitted a “debate on the balance of advantages and disadvantages of using credit scores and credit insurance-Based opinion.

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