Allstate: Racial Discrimination in Texas (2006)
August 7, 2008
June 2006:
Allstate has settled a class-action lawsuit first filed in Texas by six members of minority groups who claimed Allstate’s pricing policy was discriminatory.
Allstate used information from credit reports on consumers to establish risk, and the claim was that since minorities are often low-income, they have poorer credit scores, therefore the practice is discriminatory.
Allstate will modify its pricing policy without admitting guilt and will offer consumer education on improving credit scores.
Despite the “non admission” of guilt, it is clear Allstate engaged in racial discrimination, not surprising, given their history of religious discrimination based on their affiliation with the Church of Scientology.
