Why does our government allow the insurance industry the authority to base monthly auto insurance rates on a consumer’s credit worthiness? This effectively means the higher a consumer’s credit rating then the better monthly rate he or she might attain.
For example: if one person has a credit score of 800, and the other a score of 700 — while both individuals has a clean driving record for the past 5 years, the individual with the higher score may be eligible for a greater discount. Doesn’t this appear as one of the craziest ideas and financial schemes in all of the industry’s capitalistic history?
What on God’s earth does one’s driving record has to do with their financial obligations and spending habits? Hasn’t the insurance industry gone too far?
I suppose the industry hired one of the best shrinks in the country who subsequently provided it with a scientific psychological study reading something to the effect of; ‘people with poor credit scores are at a higher risk of getting into accidents and driving reckless,'” wherein the insurance industry used the study to lobby Congress, so that the STUPID idea could be put on the industry’s books [its billing guidelines].
It’s the kind of ABUSIVE PRACTICES where an Elizabeth Warren type needs to bring all the heads together; from the U.S. Department of Treasury, the Federal Insurance Office, the Bureau of Consumer Protection, and the Consumer Financial Protection Bureau, to concur that the credit score invoicing scheme is an EGREGIOUS PREDATORY IDEA. Do our government believe Americans are that STUPID? Give us a break! Jeez!