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What a crock


divemedic
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I got insurance from esurance. They quoted me a premium of $985. Now, 2 days later, they want to raise my rates from 170 per month to 290 per month because of a CR they got from "Choicepoint".

This is what they said:

ChoicePoint reported the following consumer information for the primary driver:

- Number if consumer initiated transaction inquiries in last 6 mos.

- Percent of balance to high credit for your bank revolving accounts

- Number of accounts opened in last 24 mos.

- Lack of information reported on your oil company accounts

I have not opened any new accounts in the last 24 months, nor do I have any oil company accounts. None of the big three have information on this either.

My questions:

1 Is Choicepoint a CRA under Federal law? Has this been established, or will I have to prove it in court?

2 Can the insurance company legally raise my rates after the policy is in effect, since all information on the application was correct?

3 What remedies do I have? Are there insurance companies that dont pull a CR and wont give me another hard pull?

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Yes, if you applied for the insurance they do. I haven't heard of any law suits with CP, you may want to google it. I know it's legal for banks to close accts when they get information from Chexsystems (CRA). I am assuming they have the right to if they are provided information through a CRA. I believe every insurance co does a hard pull now. It is also coded differently, so bumpage doesn't take it off. Take a look at this:

http://www.law.com/jsp/article.jsp?id=1056139884864

http://www.epic.org/privacy/choicepoint/fcraltr12.16.04.html

their rebuttal: http://www.choicepoint.com/news/2000election.html

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They can state that they are not, But......

§ 603(f) The term “consumer reporting agency” means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

Looks like the FCRA says they are.

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I agree that the FCRA says they are, but I don't think I have enough experience to prove it.

Also, no tickets, no claims, no accidents. Full coverage, 6 months, 2 vehicles. I am the only driver, commute 2 miles to work.

Florida rates are among the highest in the nation.

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I got insurance from esurance. They quoted me a premium of $985. Now, 2 days later, they want to raise my rates from 170 per month to 290 per month because of a CR they got from "Choicepoint".

This is what they said:

ChoicePoint reported the following consumer information for the primary driver:

- Number if consumer initiated transaction inquiries in last 6 mos.

- Percent of balance to high credit for your bank revolving accounts

- Number of accounts opened in last 24 mos.

- Lack of information reported on your oil company accounts

I have not opened any new accounts in the last 24 months, nor do I have any oil company accounts. None of the big three have information on this either.

My questions:

1 Is Choicepoint a CRA under Federal law? Has this been established, or will I have to prove it in court?

2 Can the insurance company legally raise my rates after the policy is in effect, since all information on the application was correct?

3 What remedies do I have? Are there insurance companies that dont pull a CR and wont give me another hard pull?

I was insured through Farmers Insurance until I saw their inquiry on my CR. I immediately cancelled. I'm now with Erie Insurance and they've never pulled my credit and according to my agent, they don't pull any reports.

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I would argue that they did not have PP. Mainly because you made no mention as to their informing you prior to accepting their offer. At the same time, how does one's credit history relate to their driving? Think about it. You have all of these "Big Shots" with 850's for a score who can't get out of their own driveway, and when they are on the road, look out as they all have a Cell glued to their ears. I'm sorry, but, I would definitely be fighting this. No matter what, the law is clear in that the consumer must be notified before a CR is pulled. True, some will have you sign the app and use the excuse that it is written and you should have known. No one should have to assume especially since the majority of others do not pull one. We have been with State Farm for over 18 years and they have yet to pull one.

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That is because most pull through ChoicePoint, who does not tell consumers who is looking at their file. I have been searching and calling for 2 days and I have not yet found a company that doesn't use insurance credit scores.

What is even worse about my situation is that they raised my rates and gave me 24 hours to cancel my policy, but they did this late on Friday afternoon, so I can't get a new policy before the 48 hours runs out on Sunday. There are no agents open. How this is not a deceptive or unfair trade practicee, I don't know. The State Dept of Insurance consumer hotline isn't staffed on weekends, either.

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Yes.. I used to have AAA who listed the pulls as "ChoicePoint-Autmobile Club".

State Farm flat out said there was no credit check, and no inquiries ever popped up. There was a discussion on this topic a while back and it was discovered that not all insurance companies behave the same way from state to state...

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I know what month a switched to Erie and there's even a statement saying they reserve the right to do a credit check but they never did. The only person who did a pull that month was our bank when we initiated the mortgage process. I wonder if it has anything to do with the payment option you opt for. I have autopay so it's not like they don't know they'll get paid every month as soon as they want the money.

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I agree that the FCRA says they are, but I don't think I have enough experience to prove it.

Also, no tickets, no claims, no accidents. Full coverage, 6 months, 2 vehicles. I am the only driver, commute 2 miles to work.

Florida rates are among the highest in the nation.

No offense here but I understand why... South Floridans are WILD drivers. I have never seen anything like it. They pull out in front of you & go 35mph, bust U turns everywhere (even at major intersections), ride the breaks constantly, change lanes without looking. They have to be the absolute worst drivers. I have lived in NYC.. and would much rather insure them.

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I'm pretty sure everyone on this board can claim the drivers in their areas are the worse....

The latest results show Michigan pays the highest in autmotive premiums. Is that because we're the worse drivers, or because we're the "Motor City" and because we go through cars like paper towel, we can afford to "make up" the rate cuts given to other areas?

I've only had one ticket so far, and that was in 1989. No accidents. My credit is NO determination of my ability to operate a motor vehicle, nor does it make me a greater "risk".

They found a cash cow. Plain and simple.

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They found a cash cow. Plain and simple.

I totaly agree. The insurance companies are a type of MOB.

Extorting money and getting away with it.

Instead of regulating the phone companies and such the GOV. needs to be going after the insurance companies.( health and motor)

Laws have made it where you have to have the insurance, but yet most people can barely afford it (if at all), and the companies are allowed to suck us dry any and every way they can.

Insurance Companies are "The Debil" :twisted:

I could certainly go on for awhile on this subject, so I will stop there.

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The rest of the report came today in the mail.

CLUE report is clear, no claims, tickets, accidents, nothing.

I sent a fax to the insurance company stating that since I have been insured with them for 6 months, and nothing has changed in my record, they cannot bait and switch my policy. My policy is a contract, and they signed it at one price, and none of the information has changed. I will be filing a complaint with the Florida Dept of Finance today.

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State Farm pulls every Jan and Jul for me. I see the Choicepoint soft pulls on my TU reports. And yes, my premiums reflect my credit scores.

From all the posts I've read about SF pulls, it would seem that either a) it is broker specific or B) state specific as to whether pulls are performed.

I know I'll be asking my broker about this. :wink:

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