Posted On: July 20, 2007, 1:43 pm CDT

Posted By: Peter Polstein

The FTC wouldn't know a reasonable survey if they stepped over one. This theory of theirs is ridiculous. If you examine credit score banding in the United States at this juncture of time, you will find that almost 45% of our nation has credit scores under the so called minimum prime level of 640. In fact, some lenders like AmeriCredit's CEO stated last December that their "sweet spot" in subprime was 639 down to 550. It is highly unlikely that a large number of Americans are at a greater risk at these levels than those with scoring bands in the 700 to 800 range. In fact, those bands have had pronounced risk factors associated with them.

The insurance industry needs to UNDERWRITE their risks, and look at past performance not some idiotic FTC report with no actuarial basis.
This is nothing more than a scam for the insurance industry to assess higher rates on risk factors which are non-existant.