|Received:||3/12/2005 11:06:24 PM|
|Agency:||Federal Trade Commission|
|Rule:||Notice of Proposed Study on the Effects of Credit Scores and Credit-based Insurance Scores on the Availability and Affordability of Financial Products|
Comments:I believe that credit scoring being used as a basis of auto insurance pricing is a very flawed and dangerous practice. I believe it is used by the insurance companies to justify higher rates to customers with otherwise flawless driving records. In addition, auto-insurance credit ratings are judged outside the normal realms of credit judgement. For example, my wife was told she had a very poor auto insurance score by our former insurance agent. This despite the fact that my wife does not have a single late payment notation on any of her credit reports, and did not carry a heavy credit card debt load in relation to her available limits. If credit scoring for auto insurance is not outlawed, it should at least be regulated to the point where a consumer can manage their credit profile to maximize their chances of ensuring a favorable auto insurance credit score.