For Your Information
Announced Actions
for January 23, 2004
Commission authorization of the
staff to file amicus brief: The Commission has
authorized the staff of the FTC’s Office of General Counsel to file
an amicus brief in the matter of Rausch et al. v. The Hartford
Financial
Services Group, Inc. et al., No. 03-35695 (9th Cir.). The
FTC’s brief supports the plaintiffs and urges reversal
of the district court’s decision. In this case, the
plaintiffs allege that when a consumer applies for insurance,
Hartford requests a consumer report (commonly known as a “credit
report”) regarding the consumer. Hartford then uses
information in the report to set the initial rate for the
insurance it offers the consumer. Specifically, the plaintiffs
allege that Hartford set the price for the insurance it offered
them higher than the price it would have set if the information
in their reports had been more favorable, and that this constituted
an “adverse action,” as that term is defined
in the Fair Credit Reporting Act (FCRA). In addition, the
plaintiffs claim that Hartford violated the FCRA by failing
to provide them with adverse action notices, as required
by the Act. The district court dismissed the complaint, holding
that the FCRA’s definition of adverse action does not
encompass setting a higher initial price for insurance.
As detailed in the brief, which
is available on the FTC’s
Web site as a link to this press release, the Commission
has recommended that the Ninth Circuit reverse the district
court’s interpretation of “adverse action,” and
hold that an insurer takes “adverse action” with
respect to a consumer, where, when setting the initial prices
of insurance, the insurer offers insurance only at less favorable
terms based on the information in the consumer’s credit
report. The Commission vote authorizing the staff to file
the amicus brief was 5-0. (FTC File No. P042105; staff contact
is Lawrence DeMille-Wagman, Office of General Counsel, 202-326-2448.)
Copies of
the documents mentioned in this release are available from
the FTC’s Web site at http://www.ftc.gov and
also from the FTC’s Consumer Response Center, Room
130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580.
Call toll-free: 1-877-FTC-HELP.
MEDIA CONTACT:
Office of Public Affairs
202-326-2180
(http://www.ftc.gov/opa/2004/01/fyi0407.htm)
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Related Documents:
Rausch et al. v. the Hartford Financial
Services Group, Inc. et al., On Appeal from the
United States District Court for the District of Oregon,
United States Court of Appeals for the Ninth Circuit, No.
03-35695
- Brief of
the Federal Trade Commission as Amicus Curiae Supporting
Appellants and Urging Reversal
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