Credit Discrimination Case to Proceed
The United States Court of Appeals for the Fifth Circuit has allowed an important case to continue that alleges that the use of credit scoring illegally discriminates based on race. The case was brought by six non-Caucasian Allstate policyholders alleging racially discriminatory pricing practices on the part of Allstate for its use of a credit scoring system. They claimed that Allstate uses this system to target non-Caucasian customers for the sale of more expensive insurance policies than those directed at Caucasian customers.
Dehoyos v. Allstate (PDF), No. 02-50721 (5th Cir. September 3, 2003).
