Washington--A federal appeals court has ruled that the Fair Credit Reporting Act requires that customers be given notice when an insurer charges them a higher rate based on their credit record.
. The requirement applies regardless of whether it is a first rate or a renewal rate, according to the 9th U.S. Circuit Court of Appeals, based in San Francisco.
Furthermore, the decision by a three-judge panel said that under certain circumstances that failure to make such a disclosure is a "willful" violation of the law, in other words, allowing a consumer to sue for damages if the consumer can prove he was not informed.
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