University of Wisconsin Law School second-year students Emily Cannon and Adam Welle are co-authors with Professor Steve Meili, director of the Consumer Law Clinic, of the column "Use of credit scores hurts consumers" in the Wisconsin State Journal of Tuesday, February 19, 2008.

The column describes the practice by insurance companies of determining insurance premiums by credit reports, which contain financial information but do not predict whether a consumer will engage in risky behavior that is likely to result in an insurance claim. The writers point out that this practice, which often results in higher premiums or insurance denial, is injurious to lower-income and minority consumers, who tend to have lower credit scores.

Cannon, Welle, and Meili also note that there is a bill in the Wisconsin State Legislature, passed by the State Senate and awaiting action by the Assembly, which would prohibit auto and property insurers from using credit scores in the underwriting process.

To read the full article, see

http://www.madison.com/wsj/home/column/other/273116 .

Submitted by on February 19, 2008

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