FTC to Examine Effects of Big Data on Low Income and Underserved Consumers at September Workshop #00051

Submission Number:
00051
Commenter:
Wanda Williams
State:
South Carolina
Initiative Name:
FTC to Examine Effects of Big Data on Low Income and Underserved Consumers at September Workshop
Matter Number:

P145406

BIG DATA A TOOL FOR INCLUSION OR EXCLUSION - BIG DATA CORPORATIONS WERE CREATED FOR CERTAIN INDUSTRIES FOR ONE PURPOSE AND THAT IS TO INCREASE REVENUE. LEIXIS-NEXIS, SHARE POINT, [LIEXUS NEXIS PURCHASED SHARE POINT] FAST DATA OBTAIN AND USE CONSUMERS PRIVATE INFORMATION ILLEGALLY. THE ONE QUESTION WE HAVE TO ASK IS DID THE CONSUMER HAVE THE ABILITY TO OPT OUT OF THE SHARING OF THEIR INFORMATION WITH ONE OF THE BIG DATA COMPANIES. THE CONSUMER DOES NOT HAVE THE ABILITY TO REQUEST REMOVAL. LEXIS NEXIS ADVISE YOU HAVE TO HAVE A REASON - I.E., BEING STALKED, YOU ARE A PUBLIC OFFICIAL, POLICE OFFICER , YOU HAVE TO SUBMIT IN WRITING IF YOU MEET ONE OF THE COMPANIES APPROVED REASONS TO REMOVE YOUR INFORMATION. THE COMPANIES THAT UTILIZE BIG DATA DO SO WITH ONE PURPOSE IN MIND IS THERE SOMETHING IN THE DATA BASE THAT WILL ALLOW ME TO CHARGE MORE FOR A UTILITY DEPOSIT, MORE FOR AUTO, HEALTH, LIFE OR HOME INSURANCE. THE BIG DATA COMPANIES COMPILE NUMBERS THAT GIVE THE LIFE INSURANCE AND AUTO INSURANCE COMPANIES REASONS TO CHARGE HUNDREDS OF DOLLARS MORE ON A PREMIUM BASED ON THE FOLLOWING: CONSUMERS WITH BAD CREDIT HAVE MORE ACCIDENTS THAN THOSE WITH GOOD CREDIT. CONSUMERS IN CERTAIN ZIP CODES FILE MORE CLAIMS THAN OTHERS [IF YOU LIVE IN A CITY AND YOUR ZIP CODE IS NOT ONE OF THOSE AREAS THAT ARE GATED AND THE HOMES COST MORE PER MONTH THAN SOME CONSUMERS MAKE THE AUTO INDUSTRY GROUPS THE CONSUMERS TOGETHER IN A PARTICULAR ZIP CODE AND CHARGES THAT GROUP MORE STATING THEY ARE LIKELY TO FILE MORE CLAIM THAN THOSE IN THE MORE AFFLUENT NEIGHBORHOODS. WHICH IS INSANE DUE TO THE FACT A CONSUMER IN THE 31106 NEIGHBOR HOOD WILL NOT BE DRIVING A 90 THOUSAND DOLLAR CAR THAT MAY GET STOLEN OR VANDALIZED. ONE LUXURY VEHICLE COULD BE THE SUM OF FIVE OR MORE CARS IN THE LOWER INCOME NEIGHBORHOOD. TRUST ME I KNOW FOR A FACT YOUR CREDIT DOES NOT DETERMINE YOUR RISK. IF A FAMILY SUFFERS THE LOSS OF A JOB OR A MOTHER OR FATHER PASSES AWAY FROM CANCER DUE TO THE SURVIVING SPOUSE MISSING WORK AND A SIGNIFICANT AMOUNT OF INCOME BILLS DONT ALWAYS GET PAID ON TIME AND ITS NOT FROM LACK OF RESPONSIBILITY IT WAS FROM MEDICAL BILLS, LOSS WAGES, HIGHER FOOD AND UTILITY COST THEN THE INSURANCE COMPANY SAYS DUE TO YOUR LOW FICO SCORE AND OTHER FACTORS YOUR RENEWAL POLICY WILL INCREASE BY HUNDREDS OF DOLLARS. HOW FAIR IS THAT, HOW FAIR IS FOR A FAMLIY THAT IS STRUGGLING EVERYDAY TO REGAIN FOOTING AFTER A SINGLE PARENT OR ONE OR BOTH PARENTS WERE LAID OFF AND NOW THEY HAVE A BIG INCREASE IN THEIR AUTO INSURANCE. IS THAT FAIR? A FAMILY WAS ON THE VERGE OF BEING HOMELESS, FOUND AFFORDABLE HOUSING THE UTILITY COMPANY CHECKS ONE OF THE BIG DATA COMPANIES BECAUSE THE COUPLE HAVE NO UTILITY HISTORY ON THEIR CREDIT REPORT BUT LEXIS NEXIS HAS SOMETHING TO HELP THE UTILITY COMPANY INCREASE THE DEMAND FOR AND EVEN HIGHER UTILITY DEPOSIT. LEXIS NEXIS HAS ONE STUDY ON THE WEBSITE STATING THAT THE NUMBER OF AUTO CLAIMS FILED DETERMINES A PERSONS MORTALITY. AND MEASURES THEIR RISK FACTOR WHICH ALLOWS THE LIFE INSURANCE COMPANY TO CHARGE MORE FOR A FAMILY TO BE PROTECTED . THE AUTO INSURANCE INDUSTRY WAS LOOKING FOR A WAY TO MAKE UP FOR LOSSES - FICO CAME UP WITH A STUDY THAT THE NUMBERS COULD NOT BE CONFIRMED BY THE CPB WITH THE STUDY STATING CLEARLY THAT THE TWO GROUPS OF CONSUMERS THAT WOULD BE EFFECTED THE MOST BY THE NEW CREDIT REPORTING OR INSURANCE FICO SCORE WOULD BE AFRICAN AMERICANS [BLACKS] AND HISPANICS. THE MOST IRONIC THING ABOUT THIS IS THE CPB GAVE THE INSURANCE INDUSTRY THE GREEN LIGHT AND THEY TOOK THE BALL RAN WITH IT AND THIS IS WHY ALL OF THESE SO CALL STUDIES HAVE POPPED UP AND BIG DATA COMPANIES TO MAKE BIG MONEY FOR INDUSTRIES THAT RELAY ON GROUPING CONSUMERS IN ONE ZIP CODE TOGETHER AND MAKING MILLIONS OF DOLLARS MORE PER YEAR ON THEM THE VERY CONSUMER LIVING PAYCHECK TO PAYCHECK AND TRYING TO DECIDE BETWEEN PAYING BILLS AND FEEDING THEIR FAMILY. CONSUMERS SHOULD HAVE THE ABILITY TO OPT OUT. TAKE A GOOD LOOK