LAS VEGAS (KTNV) — A temporary credit score ban will stay in place in Nevada.
That's according to the Nevada Supreme Court.
The measure was first implemented by the Nevada Division of Insurance in 2020 after the division said that people's credit-based insurance scores were negatively impacted by the pandemic.
However, the National Association of Mutual Insurance Companies sued the division saying the measures were unconstitutional.
The U.S. Chamber of Commerce asked the Nevada Supreme Court to reject the ban saying any relief efforts must be lawful as well as ensure the stability and predictability necessary for businesses to thrive.
Court records show the Supreme Court ruled in the division's favor and said they acted within its authority when it found using consumer credit scores against them would result in unfair discrimination.
"The Court's decision provides a helpful analysis of both the division's authority to promulgate regulations and how the term 'discrimination' may be fairly read in this matter. The intent of this regulation was to protect those consumers who were already severely affected by the pandemic, without unfairly burdening the insurance companies."
The division said they're evaluating the number of carriers impacted by the decision and will be providing guidance on how they can comply with the ruling.
