Credit-based Insurance Scoring: Why Latinos Pay More for Auto Insurance Than They Should

Author:	Eric Rodriguez
Contact:	Janis Bowdler
Date:	Oct 24, 2008
Image (TIFF) Download (323 KB)
Related
Topic:	Community and Family Wealth-Building
Policy:	Latino Credit Card Use

Summary

Presented before the U.S. House of Representatives Committee on Financial Services, this testimony focuses on how credit-based scoring for Hispanics who tend to be nontraditional borrowers can disproportionately and adversely affect their eligibility for the most affordable products and services in the insurance market. As a result, too many Latinos are pushed unnecessarily into high-cost and fringe financial markets. NCLR provides background on the importance of barring credit scoring within insurance scoring models and discusses recommendations for serving consumers with no credit scores or “thin” credit files.