Several U.S. Supreme Court justices voiced concern last week about the practicality of an appeals court decision implying that insurers must notify consumers when their credit record results in a higher premium.
At issue is a ruling by the 9th U.S. Court of Appeals in San Francisco that implied insurers must send an adverse-action notice to customers whenever they are not given the best possible rate based on credit scoring.
"If the court adopts the consumers' argument, there will be tens of millions of notices being sent out," said Justice Stephen Breyer, during oral arguments in Safeco Ins. v. Burr, and GEICO v. Edo, consolidated as No. 06-100. He said that, based on information he found on the Internet, perhaps 99 percent of consumers have less than a perfect credit rating.
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