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Bipartisan Credit Scoring Reform Package Passes House
After ending the last Senate Session with former Senator Martha Scott (D-Detroit) requesting leadership to “take up my bills” for the better part of four years with no action, the House of Representatives overwhelmingly passed a package of legislation Thursday providing for further consumer protections in the utilization of credit scores in setting insurance rates.
The four bill package, sponsored by Representatives Ben Glardon (R-Owosso), Lisa Howze (D-Detroit), Paul Opsommer (R-Dewitt), and Deb Shaughnessy (R-Charlotte), passed the House 103-5.
Contrary to the efforts of Ms. Scott and others, this package allows insurance companies to continue the utilization of credit scores in setting insurance rates; however, prohibits the credit scores from being used to deny or cancel coverage. Additionally, if an insurance company checks an individual’s credit while shopping for coverage, the action will not have an effect on the credit score.
Four Democratic House members, Representatives Lisa Brown (D-West Bloomfield), Phil Cavanaugh (D-Redford Township), David Nathan (D-Detroit), and Maureen Stapleton (D-Detroit) were joined by one Republican, Representative Tom McMillin (R-Rochester) in opposing the package.
posted by PAA Online
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Friday, October 14, 2011
10:38 AM
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