Use of credit scoring to price homeowners’ insurance premiums can discriminate against minority homeowners.
Many insurance companies use credit scoring to price homeowners insurance premiums, and charge higher premiums for people with less than a stellar credit score. This can really hurt minority homeowners in particular.
Generations of deeply imbedded racial discrimination has created significant economic disparities and disadvantages for minority communities. Our experience in litigating discrimination cases has shown that credit scoring algorithms can pick-up on these economic disadvantages and penalize minorities for them. Even though this discrimination can’t be detected on the face of a credit report, it is very real. The Fair Housing Act (“FHA”) was constructed to address subtle and evolving economic discrimination, even though data-driven credit scoring wasn’t even contemplated when the Fair Housing Act was passed. Our experience in litigating these cases has shown that we can prove this discrimination with expert analysis.
Our justice system allows individuals to challenge discriminatory corporate practices to bring about important social change. Christa Collins of Harmon, Woods, Parker & Abrunzo, P.A. has years of experience protecting the rights of individuals in class actions, and has had success challenging the discrimination caused by insurance credit scoring. If you’ve been charged more for homeowners’ insurance because of your credit score, contact our office for a free consultation.