IBAO is applauding the Government of Newfoundland and Labrador today for their recent ban on the use of credit scoring in personal property and private passenger auto insurance. Just a couple weeks apart, the prohibition for personal property insurance came into effect on May 13th and private passenger automobile insurance on June 1st, 2011.
With this announcement, we encourage IBAO members to continue their efforts in reaching out to the Ontario government in hopes that they will follow Newfoundland and Labrador’s lead in banning this unfair and deceptive practice in Ontario. As we know, the use of credit scoring to measure a person’s insured risk is affecting those who can least afford it. Furthermore, three out of four Ontario consumers are unaware that their credit scores are being used to determine how much they pay for their home insurance.
In a continued effort to protect consumers, IBAO encourages members and the public to visit www.SoaringInsuranceRates.ca, a consumer educational website launched by IBAO in May 2011. Since the launch, close to 3,000 concerned Ontarians have logged on to educate themselves with many signing the online petition and sending letters to their Members of Provincial Parliament with their concerns.
IBAO continues to ask the Ontario government to respond to the concerns of its citizens and ban this misleading practice in home and other personal property insurance!