Credit Scoring: An Emotional Issue

Because an individual's credit is "very personal in nature," the use of that information is "an issue fraught with a lot of misunderstanding," observed Roger H. Schmelzer, vice president, regulatory affairs for the National Association of Mutual Insurance Companies. "That makes it dangerous as people get emotional about things," he added. David F. Snyder, assistant general counsel for the American Insurance Association in Washington, stated that although insurers use credit information in vastly different ways, the AIA hopes that the National Association of Insurance Commissioners Market Conduct and Consumer Affairs "D" Committee will consider only whether any additional legislation or regulation is necessary on credit scoring.