U.S. Rep. Melvin L. Watt, D-N.C., chairman of the House Subcommittee on Oversight and Investigations, announced a hearing for Oct. 1 to consider the implications of the growing use of credit-based insurance scores for consumers.
Specifically, Watt said 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 raises serious concerns about the impact of the growing use of credit-based insurance scores that demonstrate a proxy effect for minorities. I have, therefore, quickly scheduled a hearing this week to review the report, including discussion of the limitations of the research methodology that was used for the report,” said Congressman Watt.
“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-lll.
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