Credit score

Judge overturns credit score ban for calculating bonuses

In his ruling, obtained by the News Network, Wilson added that Kreidler failed to notify the legislature that the ban was an emergency at a time when the Senate was considering a bill that would have the same objective. This bill, however, later died in the Senate.

Kreidler told KIRO-7 News he was disappointed with the decision citing that using credit scores to determine insurance rates is unfair to people living in communities of color. He added that some credit reporting rules had already changed due to the CARES Act, making the use of credit scores unreliable.

“It is high time the industry applied reliable and fairer factors to determine premiums,” he said in a statement sent to KIRO-7 News. “There are better ways to maintain their profits than relying on this outdated practice that depends on people struggling with their credit scores. I will continue the fight to permanently ban credit scoring and consider my options.

The insurance industry, however, welcomed the decision.

“I think this is an important decision and I’m very pleased with the outcome,” said Claire Howard, general counsel for the American Property Casualty Insurance Association (APCIA), one of the industry groups that filed the lawsuit.

Read more: APIA Files Lawsuit to End Regulations Banning Use of Credit Scores for Insurance Rates

“There are still questions about the pricing plans and the impact it will have on all drivers, owners and renters in Washington who have been affected by increases. The OCI – which is the acronym for the office of the insurance commissioner – will now have to solve these problems for insurance consumers,” she told KIRO-7 News.