WASHINGTON–The U.S. Supreme Court today unanimously backed the disclosure policies of two insurance companies when they don't give a consumer the best possible rate based on a credit report.

Insurers had argued for a flexible standard on such "adverse action notices." Had their position been rejected by the high court, the industry could have faced a new wave of class-action lawsuits from consumers who were not told they weren't getting the best possible rate based on a poor credit score.

The case involved a decision last January in the 9th U.S. Circuit Court of Appeals–Safeco Insurance Co. of America, et al, v. Burr, et al, No. 06-84–that insurer defendants acted "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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