The Federal Trade Commission’s report last week on credit scores and minorities is drawing a mixed response from advocates as a Congressional subcommittee postpones a hearing on the topic.
The FTC’s “Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance,” found that African-Americans and Hispanics generally have lower credit scores and pay more for auto insurance.
The FTC also said it could not develop an alternative scoring model that would decrease the racial and ethnic disparity. “The results of these efforts indicate that there is no readily available alternative scoring model that would achieve those results,” the report stated.
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