WASHINGTON–A hearing scheduled for today to discuss the Federal Trade Commission's findings on use of credit scores in setting insurance rates has been unexpectedly delayed.
FTC said in a report that credit scoring is an “effective predictor” of risk for rating auto insurance customers. The study's findings have been criticized by two commission members as flawed and the methodology has been attacked by consumer groups.
Rep. Mel Watt, D-N.C., chairman of the Subcommittee on Oversight and Investigations, which scheduled the hearing, said this morning it would be rescheduled for a later date.
“The growing use of credit-based insurance scores affects millions of consumers,” Rep. Watt said. “We look forward to hearing from a range of perspectives including state insurance regulators, consumer advocacy groups and the insurance industry on this important issue.”
The chief of staff for the Florida Department of Insurance said one reason the hearing was postponed was because Florida Insurance Commissioner Kevin McCarty informed the committee last night that he had a personal emergency and had to return home as soon as possible.
He was scheduled to represent the National Association of Insurance Commissioners at the hearing.
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