IBAO website educates consumers on credit scoring issues
The Insurance Brokers Association of Ontario (IBAO) has launched www.SoaringInsuranceRates.ca, a consumer-focused website to educate Ontarians about the use of credit scoring in home and other personal property insurance.
The website is part of the associations’ public consumer campaign to ban the use of credit scoring in home and personal property insurance rate setting.
“Credit scores are a factor that consumers have very little control over – most are unaware what their score is,” said Randy Carroll, IBAO CEO, in a statement. “The use of credit scoring in measuring a person’s personal property insurance rate is a deceptive and unfair practice to Ontario consumers. This new website will educate Ontarians on the issue while providing them with all of the necessary tools required to reach out to their local MPP and demand that this practice be banned.”
IBAO says it has been working diligently with Members of Provincial Parliament (MPP) to have this practice banned in the province of Ontario. In 2005, the Ontario government banned the practice of using credit scoring in auto insurance policies and further enforced the ban this year as part of the new auto regulations that came into effect on September 1, 2010. IBAO is asking the Ontario government to follow its own precedent and ban the practice entirely.
MPP Mike Colle introduced a private member’s bill in November, 2010 entitled Bill 130: The Homeowners Insurance Credit Scoring Ban Act, 2010 which asks the government to ban the use of credit scoring on personal property insurance. Consumers are also encouraged to visit his website www.mikecolle.com and sign his support petition for the Legislative Assembly.
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