|Received:||3/12/2005 10:54:58 PM|
|Agency:||Federal Trade Commission|
|Rule:||Notice of Proposed Study on the Effects of Credit Scores and Credit-based Insurance Scores on the Availability and Affordability of Financial Products|
Comments:For the first time ever I received my credit reports and they are so completely inacurate that it will take me months to fix. Each credit report has an average of 10 trade lines that are effecting our scores that are inaccurate. The problem is that companies are verifing inaccurate information. Our credit scores are low. This I know has caused my homeowners insurance to go up to more than 5x what I paid last year. When I called around for homeowners insurance I was told since our credit score was low that meant that we would not take care of our property, this was their reason for offering us insurance at such a high rate. There were people with million dollar homes whose insurance was cheaper than what they offered us many just refused us completly. We ended up having to go through the State of Ohio for our homeowners insurance. How is it that a finacial score becomes more important than how many claims we file? If the information in the credit report is inaccurate or just plain false then the FICO score will be wrong as well. This is a computer generated number that can't take into account that there are errors. When we refinaced our home we were told that our credit scores were low, since we knew nothing about them we were pushed into a preditory loan with a higher interest rate than we had to begin with. This action led to one big mess and to bankruptcy. It has been 2 years since and I am just now understanding what a credit score means and how it works to change peoples lives. It allowed us to be manipulated by crooked people. People should not be denied homeowners insurance or car insurance because there credit score is low. The insurance industry says that if your credit score is low you will have more accidents or not take care of your property, where is the proof of this? The ones that offer you coverage offer it at such high rates that the people with low scores who are already having problems paying bills have will now not be able to afford basic and needed insurance. It is hard enough to deal with high interest rates for homes, cars and credit cards with low scores (from either inaccurate information on credit reports or bad finacial moves or acts) but to put such huge finacial burdens as high insurance costs on those who can least afford it because of their credit score is wrong.