The FACT Act of 2003: Notice and Request For Public Comment On the Effects of Credit Scores and Credit-Based Insurance Scores on the Availability and Affordability of Financial Products
The use of a FICO score to determine insurance rates is discriminatory. Many times FICO scores are low and it's not the fault of the consumer. This is why several states have banned the practice. It should be banned in all states, and the Federal Govt could do this. I have no problems with lenders using a FICO score to determine credit worthiness. Usually the consumer has a chance to talk to the lender and explain why the score is low. They do not have that opportunity with an insurance company.