Bill Would Prevent Insurance Companies From Charging Higher Rates To Customers With Poor Credit
Vince Leibowitz | Feb 11, 2009 | Comments 1
A bill by State Rep. Armando Walle (D-Houston) would outlaw a favorite practice of insurance companies: credit scoring.
Under HB 1157, an insurance company writing policies in Texas would be prohibited from using information about an individual’s credit to increase insurance prices or premiums or demand a specific payment schedule from a customer.
Aside from redlining, credit scoring is perhaps the one practice in the insurance industry preventing many low income and minority people in Texas from automotive and property owner’s insurance than any other factor.
Insurance companies use credit scoring to jack up prices on individuals with poor credit or low credit scores, making even minimum state liability insurance for driving out of reach for many Texas consumers.
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Filed Under: 81st Texas Legislature
[...] State Representative Armando Walle has sponsored a bill that will make it illegal in the state of Texas to use credit scores as a means of determining [...]