Insurance credit scores in Michigan

From the Michigan Supreme Court:  “The Court will also hear oral arguments in Insurance Institute of Michigan v Insurance Commissioner, in which the plaintiffs, a group that includes insurance companies and individual customers, challenge administrative rules aimed at prohibiting insurance scoring, the practice of using consumer credit report scores to set personal insurance rates.”

The Insurance Institute of Michigan states, “A 2007 study by the Federal Trade Commission found that credit-based insurance scores are effective predictors of risk under auto policies.

The Michigan Office of Financial and Insurance Regulation contends, “Credit information has been found to contain such a high rate of errors that there is an unacceptable likelihood that persons will be misclassified,” and cites studies by U.S. PIRG and the Consumer Federation of America.

credit score, employers, UC Irvine, New University

From: Greg Fisher
Sent: Saturday, October 03, 2009 7:28 AM
Subject: credit score, employers, New University

You wrote, “Employers increasingly run credit checks on prospective hires; a high score is seen as an indicator of reliability.”

Who is your source regarding credit score use by employers?