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Arkansas supports credit score case against insurance companies Friday, Dec 29, 2006 By Jason Wiest Arkansas News Bureau LITTLE ROCK - Arkansas joined 12 other states in a brief filed with the U.S. Supreme Court in support of a case consumers brought against the insurance industry's use of credit scoring in determining auto insurance rates, the state insurance commissioner said Thursday. In two separate cases, plaintiffs claimed Safeco Insurance Co. of America and GEICO General Insurance Company violated the federal Fair Credit Reporting Act by not sending out adverse action notices when a consumer's credit information resulted in the consumer receiving a higher rate, Commissioner Julie Benafield Bowman said. The states' friend of the court brief asks the nation's highest court to uphold the decisions of the 9th U.S. Circuit Court of Appeals, which found in favor of the plaintiffs. The Supreme Court is scheduled to hear oral arguments on Jan. 16. Bowman said she joined in the brief because consumers deserve to know if something in their credit score resulted in higher rates for their car insurance. Other states joining in the filing were California, Delaware, Georgia, Iowa, Kansas, Michigan, Montana, New Mexico, North Dakota, Oklahoma, Utah and Washington. |
