Class Action Lawsuit Settlement Affects
Below is a MRR and PLR article in category Reference Education -> subcategory Legal.
Nationwide Class Action Lawsuit Settlement
Summary:
A significant settlement has been proposed in a nationwide class action lawsuit alleging Allstate's violation of federal civil rights laws by using credit report information to determine the pricing of personal insurance policies.
Details:
A class action lawsuit has been initiated against Allstate, claiming that the company violated federal civil rights laws through its use of credit report data to set prices for personal insurance policies. Allstate denies any wrongdoing, and no determination of fault has been made by the court.
Upcoming Hearing:
The United States District Court for the Western District of Texas is scheduled to hold a hearing on December 18, 2006, to decide on the approval of the settlement. Additional details can be obtained by calling (866) 817-6514, visiting [www.creditusesettlement.com](http://www.creditusesettlement.com), or writing to DeHoyos Settlement, P.O. Box 9000
6428, Merrick, NY 11566-9000.
Who Is Affected?
The settlement class includes individuals who:
- Are Black/African American or of Hispanic/Latino origin.
- Currently or previously held an Allstate homeowners, automobile, condominium, or renters insurance policy and were charged higher premiums based on credit information.
- Applied for a policy from one Allstate insurer but received it from another based on credit information.
- Received a notice with their policy indicating:
1. Credit information was used to determine rates or policy outcomes.
2. They didn't qualify for lower rates or a certain policy due to credit information.
3. Their rights under the Fair Credit Reporting Act.
Proposed Benefits:
If approved, Allstate will:
1. Introduce a new insurance scoring formula.
2. Provide information on obtaining a policy using this new formula.
3. Make the new scoring formula publicly available.
4. Offer credit education programs benefiting class members.
5. Implement an appeals program for extraordinary cases.
6. Increase multicultural media spending.
7. Make one-time monetary payments to eligible class members who submit request forms.
Class members can object to the settlement if they wish.
You can find the original non-AI version of this article here: Class Action Lawsuit Settlement Affects.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.