November 26, 2002

 

 

M E M O R A N D U M

 

 

TO:      Chapter Presidents and Benefit Coordinators

 

RE:       Liberty Mutual - Requests for Quotes

 

SUMMARY:  Members should be notified that when requesting a quote for auto or homeowners insurance from Liberty Mutual, an inquiry will be made on their credit reports.

 

NTEU was recently notified that when a member requests a quote for automobile insurance through Liberty Mutual, an inquiry into the member’s credit report may be made and information found during the inquiry may be used in the calculation of the quote.

 

Please inform members that this is a common practice for most insurance companies.  Insurance companies are trying to find ways to keep the rising costs of insurance down and one of the ways they believe that will happen is to partially base their insurance premiums on a person’s credit history.  It needs to be made clear that when requesting a quote through Liberty Mutual, only an inquiry will show up on the member’s credit report.  In addition, Liberty Mutual representatives are required to inform a member requesting a quote that their credit report will be accessed.

 

If you have any questions regarding this matter, please contact Tamara Schultz, NTEU’s Benefits Coordinator, at 202/783-4444, ext. 2798 or via e-mail at Tamara.Schultz@nteu.org.

 

 

 

 

Colleen M. Kelley

National President