From Chris Bell on HB 23, a bi-partisan proposal to end credit scoring for insurance rates in the state. This predatory and punative practice affects everyone, but impacts those who can least afford it.
STATEMENT BY CHRIS BELL ON HB 23 Offered as testimony before the Insurance Committee, 2/21/05Posted by kerry at February 22, 2005 08:36 AM | TrackBackThere is no logical basis to link insurance rates to credit ratings. If someone is late on his credit card bill, that does not mean that a tornado is going to hit his barn. Economic redlining only serves to protect the profits of insurance companies, and we have a moral mandate to stop this now and to lower the barriers to home ownership.
This is not a partisan issue. The sponsors of HB 23 are Republicans, and in 2002, Rick Perry promised to end credit scoring in Texas. He was right to take that election-year stand back then, and though his appointee at the Texas Department of Insurance is protecting economic redlining, the Governor would do well to keep his earlier promise."