Posted On: November 8, 2006, 9:17 pm CST

Posted By: Einstein

Wow after 30 years as a broker this is the best snowjob that any industry has sold to the consumers, KUDOS! We are making the oil and tobacco industry yearn for another burn. Let me give THREE REASONS that this was a great snowjob 1) The insurance industry heavily funded against it. They are high-fiving and laughing at there power. Why would they want lower premiums, because if you believe this, then you must believe the oil companies are going to return their profits for high prices at the pump. 2) It has always been a fact that our best policyholders had the ability to pay, but if the insurance companies said this it would be unfair, so they have you believe that credit scoring is not the same. The ability to pay is what determines you credit score! 3) Finally, this is how the tobacco industry made billions, they did not tell the consumer what was in their cigarettes, and when asked said I don't know. Please someone tell me how the credit score formula is derived, it you ask any lending institution they will say "I really don't know" yet they base your rate or even acceptance on this. Believe me they will not tell you whats in the formula because it only favors who CORPORATE AMERICA. Please if you really believe this was good for the consumers, then your corporate bosses have done a great job of selling. Simply put, this was a business decision made by the insurance industry to boost profits by giving better rates to those with the ability to pay. Do you really believe that poor people can not manage there finances, they simple do not make enough money to manage. So from an underwriting viewpoint not making enough money creates ONE KIND of stress that causes accident, so does divorce,death, and illness. So now lets increase rates if you have step children. I think I've made my point, there are many factors which can effect the probablity of a loss, but credit scoring is category of consumers rated by their pocketbook, not their driving record.