Your car and your credit
Using credit scores to determine auto insurance premiums and encouragement is a standard practice in the industry. For years, insurers, that assessments of a person primarily to measure their level of solvency, are also an indicator, if - and how many times - someone file is automatically insurance.
And for years, consumer groups urged state legislators and the federal government, errors in this practice. Consumer advocates say, with credit scores for insurance of evil, wrongly, Afro-Americans and Hispanics because those groups tend to credit assessments and thus lower the end to pay more for their automobile insurance. They complain that errors in the files of credit, comments and therefore lower increase in insurance premiums.
The trade fair and truthful credit charged Act of 2003, the Federal Trade Commission for examining the use of credit scores in setting auto insurance rates. Among other things, the FTC has been asked to determine the impact of credit scoring insurance is based on certain groups, such as low-income and minority rights, rights of consumers.
Recently, the FTC issued a study, the pages of big business. The Commission, with research, comments and information relating to industry, concluded that the credit assessments of forecasting the number of consumer complaints file and the total cost of these claims.
Some insurance companies began using Scoring in the mid 1990. Today, all major auto insurance companies use credit-Based capacity in some comments, according to the report of the FTC.
The Consumer Federation of America, the National Fair Housing Alliance, National Consumer Law Center and the Center for Economic Justice in a joint statement criticizing the methodology of the FTC.
“The FTC’s approach to collecting data for analysis that the federal government try to do a study on the health effects of tobacco consumption of tobacco use with selected data for the study of business,” said Allen Fish leg the Consumer Federation of America.
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