House Panel Postpones Today’s Credit Scoring Hearing

July 27, 2007

U.S. Representative Melvin L. Watt, D-N.C., chairman of the Subcommittee on Oversight and Investigations, today announced that the hearing entitled: “Credit-Based Insurance Scores: Are They Fair” is postponed and will be rescheduled for a later date.

“The growing use of credit-based insurance scores affects millions of consumers. We look forward to hearing from a range of perspectives including state insurance regulators, consumer advocacy groups and industry on this important issue,” Watt said.

Specifically, the hearing will review a Federal Trade Commission (FTC) report to Congress entitled, “Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance” and examine its key findings.

The hearing will also study the efforts underway by the states to regulate the use of credit-based insurance scores.

“The FTC report confirms some of our initial concerns about the fairness of credit-based insurance scoring when it comes to Latinos and African-Americans. But I am pleased that Oversight Subcommittee Chairman Watt will hold a hearing on the issue and look forward to learning more details about the study,” said Congressman Luis Gutierrez, D-Ill.

No insurance industry representatives had signed up to testify prior to the announcement of the postponement.

Those schedueld to testify were Kevin McCarty, commissioner, Florida Office of Insurance Regulation; Eric Rodriguez, deputy vice president, National Council of La Raza; and Birny Birnbaum, executive director, Center for Economic Justice.

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