WASHINGTON–Insurers will argue to the U.S. Supreme Court tomorrow that they did not violate the Fair Credit Reporting Act when they failed to notify consumers they were not given the best insurance rate because of a credit report.

If that position is not upheld, the industry could be facing a hefty bill from consumers who were not advised that their poor credit score resulted in a higher premium price.

The case is based on a decision last January in the 9th U.S. Circuit Court of Appeals in San Francisco that defendants such as Safeco, GEICO and the Hartford act “in willful disregard” of the Fair Credit Reporting Act in not disclosing that the best rate was not charged a consumer, and as a result, the consumers involved have the right to recover damages.

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