A date has not been set for oral arguments but the court has already “reviewed the standard for notification on Sept. 26” when they “consolidated cases involving Geico General Insurance Co. and
Safeco Insurance Co. of America.” Those two cases were ruled on by the Ninth U.S. Circuit Court of Appeals in San Francisco last January.The issue at hand is conflicts of the interpretation of the Fair Credit Reporting Act (FCRA). The FCRA law “requires companies to notify consumers about rate increases that are based on information in their consumer credit reports.”
The Ninth Circuit ruled “that an insurance company is required by the FCRA to issue adverse action notices whenever a consumer’s credit information does not result in the consumer receiving the best possible rate” and also “that by not issuing the notices, these companies had acted in “willful disregard” of the law.”
Insurers are arguing “that notification is not required when applicants are asked to pay more on an initial insurance policy based on a negative change in their credit rating” and also “Being offered a higher rate when first buying a policy does not qualify as an ‘increase’ under the law unless a lower rate had been offered previously.”
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