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Colorado Senators KO Credit Ban
West News • January 28, 2005
By a 5-2 bipartisan vote members of the Colorado Senate Business, Labor and Technology Committee rejected a measure that would have banned insurers from using credit history to underwrite and rate ...
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| Subject | Posted By | Posted On |
|---|---|---|
| Bunch of unsophisticated Cowboys out here | I rule | Jan 31, 2005, 11:57 am |
| RE: RE: It's not low income and minorities | W.S. | Jan 28, 2005, 4:04 pm |
| RE: It's not low income and minorities | Tass | Jan 28, 2005, 3:13 pm |
| It's not low income and minorities | Whimp Stomper | Jan 28, 2005, 1:04 pm |
| Colorado Senators KO Credit Ban | Rolf Neu | Jan 28, 2005, 12:39 pm |
| Back to article | ||
Subject: Colorado Senators KO Credit Ban
We know that the bottom of our economic ladder bear the brunt of employment interruptions that exascerbate their economic condition. We also know that this burden falls most heavily on those with less education and that historically has included minority groups, e.g. blacks, Chicanos and other immigrant groups.
Therefore, using FICO scores to determine eligibility and/or rates for automobile insurance, for example, unfailrly impacts those whose FICO score is liekly to be lower due to their economic circumstances. WHY is their economic situation worse? Minorities not only earn less on average but their employment is less stable than non-minority persons. Bottom line, using FICO scores unfairly discriminates against the the poor and minorities.
Bottom line: you can't make a silk purse out of a sows ear and credit scoring remains a 'sows ear'.