Hr Bill from last July 2009

[momisery]

I have been reading about a HR bill from last year that is trying to remove the credit reporting review being done by employers. How can we support this and get it into congress to get this done?? What are your thoughts? There was a really good article about a lady working as a temp on MSN.. it appears she was able to work and was a great employee but when she tried to get hired full time, suddenly the credit score popped up and she could not work there. From good to bad in one credit score, medical debt to boot from being laid off.. geesh...

[DYLAN150]

The same with car insurance depending upon the state. Car insurance companies found just another way to raise rates, it's called the fico score. This goes for homeowners insurance too.

[BrokeIn2010]

I caught something in passing, but never heard much about it. Honestly it's, in my opinion, discrimination against people (mostly poor or lower middle class) just because they've had a rough patch in life.

[nc73]

I can understand car insurance requiring a credit check because people who have low scores tend to make more claims. At least that's my theory. It doesn't make sense with employment though.

[forgotten]

I can understand car insurance requiring a credit check because people who have low scores tend to make more claims. At least that's my theory. It doesn't make sense with employment though.

Same theroy. If you have bad credit you are more likely to steal from the company or just be of low moral standing. The guy with good credit is more trustworthy.

[flyinbroke]

Bernie Madoff had good credit. So did most of the other corporate clowns in jail right now.

I think the CCs have way too much power in this country, thanks to FICO (a product of the very same people.)

[momisery]

There should be a grass roots effort on this some place? I think this is very important to people who are being forced into BK for the first times in their lives after being honest bill payers for decades. The policy is not fair, and I have to say I handle money every day, not once did it cross my mind to take someone elses. My thoughts were how can I help myself with this mess and I kept spending my own until all the savings was gone. Then I did the only thing honest left to do, file a BK. The dishonest way would be to steal and not file.. BK people are more honest, they are not willing to take what is not theirs. And as has been pointed out you can have a great credit score and still be stealing like crazy. Totally a stupid law. I also am not more likely to make claims against my insurance, my driving is not more reckless... I don't get the concept here. What I think it really is would be that your down and broke.. you can't afford legal help to fight them so they dump on you. And great crowds of people will not protest because they think you crap too because you filed a BK.. at least until they get their first taste of our great healthcare system.

[BrokeIn2010]

All we can really do, is just write letters to our state and federal representatives, the president, Governor, and keep at it drop by drop till they realize that one of the ways to help with the economic recovery is to take this short-sights and ignorant assumptions out of play.

I'm all for it, mind you.

[flyinbroke]

The insurance companies are full of (*#%^. I don't believe people with high credit scores file less claims. I believe people with more MONEY file less claims. High credit scores = more debt.

[justbroke]

The insurance companies are full of (*#%^. I don't believe people with high credit scores file less claims. I believe people with more MONEY file less claims. High credit scores = more debt.

I've actually looked at "insurance" credit scores. they are different than a FICO/FAKO score. It looks at total available credit, debt to income ratio, profession, income, and several other factors. It is more about likely to file a claim, than a high "FICO" score! My FICO score was like 720 but my INSURANCE score was over 800. That's because I had tens of thousands in available credit.

So, it's not so simple as high (FICO) credit score = more debt.

To an insurance company, it's all about not filing a claim. They would love for you to charge vehicle repairs, following an accident, to your own credit card, than for them to need to pay a claim. I actually got into an argument with GEICO who jacked up my insurance after a claim, and I told them that for the $500 deductible, the total repair costs were only like $750 and I would have just paid that myself!!! Sheesh. Oh, to make matters worse, we were rear-ended and GEICO spent over a year trying to recover the $250 from the other insurer, and maybe that's why they were mad at me.

So, yeah, insurance companies are not my friend. However, their model of determining rates and pools, does seem to make sense. Someone with no available credit is much more likely to file a claim for a collision (without PI), than someone with tens of thousands in available credit.

[flyinbroke]

Like I said, people with MONEY (or the appearance of money aka credit lines) file less claims.

Funny, I was tapped out and still decided against insurance for a 1K worth of damage (my fault) even though I had a 500 deductible. It wasn't worth it to me. All other accidents were others at fault so I never really had to worry.

[justbroke]

Funny, I was tapped out and still decided against insurance for a 1K worth of damage (my fault) even though I had a 500 deductible. It wasn't worth it to me. All other accidents were others at fault so I never really had to worry.

That's how they want you to think, and that's what keeps your insurance score high.

[flyinbroke]

Odd, because I was told I am not getting the best rate because of my score. Any claim I made was due to others' negligence...though my former insurance had to pay for an uninsured who T-boned me. Not my fault...this is why I pay for uninsured coverage.

[olivies]

Like I said, people with MONEY (or the appearance of money aka credit lines) file less claims.

Funny, I was tapped out and still decided against insurance for a 1K worth of damage (my fault) even though I had a 500 deductible. It wasn't worth it to me. All other accidents were others at fault so I never really had to worry.

Good point. More money, more access to good credit lines = more likely to be driving a high priced or luxury vehicle = more likely to make the claim because repairs are more $$ = more cost to the insurance company.

Honestly, who does these correlations? Companies that the insurance companies hire to look for a discriminatory rating factor. The insurance companies would make far less money if they couldn't rape someone on their rates for arbitrary reasons. Just like how they count it against you if you get rear ended sitting at a stop light, or if you get sideswiped by someone who ran a red light while you were going through the interesection. Completely not your fault, but hey- their logic is "somewhere, there's a driver who's never had that happen despite the fact it was out of your control, so we have to give them a better rating".

[OhioFiler]

Good point. More money, more access to good credit lines = more likely to be driving a high priced or luxury vehicle = more likely to make the claim because repairs are more $$ = more cost to the insurance company.

Honestly, who does these correlations? Companies that the insurance companies hire to look for a discriminatory rating factor. The insurance companies would make far less money if they couldn't rape someone on their rates for arbitrary reasons. Just like how they count it against you if you get rear ended sitting at a stop light, or if you get sideswiped by someone who ran a red light while you were going through the interesection. Completely not your fault, but hey- their logic is "somewhere, there's a driver who's never had that happen despite the fact it was out of your control, so we have to give them a better rating".

Some of the most brilliant mathematical minds in the world actually. The process to become an actuary is rather extensive.