Updated 11/2/08

After reviewing the situation with multiple attorneys in our network it appears we are out of luck. In general, insurance companies have the right to run your credit for underwriting purposes (to determine how much to charge you.) It appears that USAA didn't violate any state statutes. In addition, you can see the response from USAA below. Their rates still are the lowest in the industry, and they have been taking care of us personally for every claim I've ever made so we'll be sticking with them. I'm still annoyed that they couldn't just state that they had to raise rates because of the current economic situation in their original renewal notice to me, but, what can you do? I'm pleased with their attention to this matter and have pulled the submission form for this particular item. Thanks to all of the viewers out there who submitted their letters of encouragement! I appreciate it!

So, what IS illegal? If you have an auto insurance claim that was denied, we want to know about it. Head over to the insurance denied claims report form. Obviously insurance companies can deny claims for any number of reasons, but, not all of those are legal. If your auto insurance claim was denied. Let us know, if it's actionable an attorney will contact you

USAA's Reply Below:

Open letter to Joe (Josue) Robles - President, Wendi Strong - Executive Vice President of Corporate Communications and Liz Conklyn - Executive Vice President of People Services

USAA - United Services Automobile Association Insurance

from Scott Hardy, President and CEO of Top Class Actions LLC

Below the submission form you'll find a letter I wrote to the President and two executive VPs of the United Services Automobile Association otherwise known as USAA. USAA is my auto, home and valuable personal property insurance company. They have been my insurer since I was 15.5 years old and had my learners permit, more then sixteen years ago. I recently spoke highly of them in my latest video blog, unknowing that I was about to receive a rate increase in the mail. How ironic is that? I speak about how much I like the company and they increase my rates by roughly 13%. Why did they increase my rates? Because of traffic tickets and accidents? Nope, it's been more than three years since I received ANY kind of ticket (non-moving violation in Vegas) and a decade since my last automobile claim. They raised my rates because they ran a certain type of credit check on me and my wife which lists us as a "higher risk." This is quite interesting, as my credit score has never been higher. It ranges from 730 - 770 depending on the credit bureau running it. My wife's score ranges from 740 - 777, yet we're high risk. Somehow USAA justified the rate increase. I have a baby, a full time job with a .com that's growing exponentially every single week, a home with more then 20% equity in place (even after the bubble), no car payments (we own both outright,) and I own 95% of my business (5% owned by an angel investor.) Wow, big risk there. It looks like I'll be picking up and leaving town any minute.

How can they stand to even insure me with that kind of risk?

It's ridiculous. I completely understand that the economy is in the dumps and rates may need to go up. I'm OK with that. Will the rate increase affect my lifestyle? No, not at all. That's not the point. If USAA had increased my rates and simply told me "Scott, hard times mean hard measures, we have to increase rates" I'd be just peachy. They didn't state that. They stated they raised my rates because of me and my faux bad credit rating. That's just crazy. It makes me wonder who else they did this to, and if their "touchless" credit check is even legal in all 50 states. Who else did they do this to that CAN'T afford the rate increase? How many of our brave men and women in the armed forces, who count on USAA for their insurance, had their rates increased for no other reason than a completely basis risk assessment by a computer? They're on a fixed income, sacrificing time with family and sometimes giving the ultimate sacrifice for their country and now they're getting their rates increased as well? Are they a higher credit risk because they're in Iraq for the majority of the year? When I voiced my complaints to a supervisor at USAA named Andrea, I was told I "wasn't the only one this happened to" and that it "even happened to me (meaning her.)"

So, did this happen to you? I want to know. As you can guess, I'm actively working with multiple attorneys in the nationwide Top Class Actions attorney network to determine the legality of the credit check across all 50 states. Guess what will happen if/when we find out that the "touchless" credit check isn't legal? Yep. You guessed it. A Federal Class Action Lawsuit will be filed. What if it IS legal? We'll see. The initial review gives us confidence that isn't the case.

Don't let USAA hurt YOU in these hard times! If this happened to you I want to know so you can be included in the class action lawsuit I'll proudly act as Lead Plaintiff in.

When will I stop this campaign? When USAA lowers my rates back to their previous level, along with the rates of every other long standing customer out there who saw an increase since 1/1/2008 due to their "credit-based insurance score."

I can't win this battle without you! If you had YOUR rates increased by USAA fill out the form below and let me know! We need to make sure that we have claimants in as many states as possible, as state law varies and their credit check may be legal in some states, but not others. We will NOT file the case without informing you! Those who register will receive an email or phone call prior to us filing this class action lawsuit if it comes to that! I promise you that! Make sure to join the newsletter to be kept abreast of the news if you AREN'T affected by this case. It should prove interesting!

Warm Regards,

Scott Hardy

President and CEO of Top Class Actions LLC

Letter written to USAA Executive Team Follows:

Dear Joe and Executive Team,
I have a complaint I'm looking for resolution on regarding USAA. I just received my automobile insurance renewal policy from USAA. Before you continue, please note that my credit score varies from 730 - 770 depending on the bureau which pulls the report. In my automobile insurance renewal packet there's a statement that my policy premiums have increased because of a credit based insurance score showing:

Number of Accounts that have been Established
Number of Accounts Currently or in the Past w/30+ Day Late Payments
Number of Inquiries for Transactions Initiated by Consumer in Last 6 Months
Number of Retail Accounts Reported in Last 12 Months

My rates increased, not because of poor driving history, a record of accidents or speeding tickets, but because of a risk factor figured by your insurance calculator. I have a stellar driving history, no record of accidents in the past seven + years and no speeding tickets. As mentioned, I also have a stellar credit record.

The timing of this is especially interesting. I am the President and CEO of a consumer advocacy website which created a nationwide network of attorneys who handle class action lawsuits. We're currently working to find armed forces reserve members who had their insurance canceled simply because they're active duty. A case was filed this morning in Illinois which may be moved to class action status. In my weekly CEO video blog (find it on the front page) which was posted Sunday night I specifically mentioned USAA and how happy I was to be a member and how you wouldn't do such a thing to one of its members. I stated plainly my trust in USAA.

After seeing this increase I can't say that anymore and may have to amend my statement. If you had said that you were raising rates because of cost increases and the market conditions I would understand. Obviously getting my rates increased by $100 every six months won't have a detrimental impact on my way of life. That's not the point. What I have to wonder is how many others were impacted by the rate increases. Even the Manager I spoke with, Andrea (her Director is Mark Peterson), stated that her rates had been increased as well and "I'm not the only one." How was that determined? Did this rate increase affect thousands? Are you simply digging through USAA members accounts and finding a "justifiable" reason to increase the rates rather then stating the true issue of rising costs?

As I stated. If you had told me you were increasing rates because of cost increases, or driving history I could understand, but don't blame me for a rate increase which is completely unacceptable.

Please contact me with a resolution by 9 PM PST Wednesday, October 22nd. If you happen to have one of your attorneys attending the National Association of Consumer Advocates convention this weekend I would be happy to meet with them in person.

I trust USAA, and have for more than 16 years. In that time, even when I was up to my eyeballs in debt with no foreseeable way out more than four years ago, did I ever receive this kind of notice. Now that the situation has completely reveresed I am simply shocked. Please don't make me regret my longstanding relationship with your Company. It would be a shame to end it over a $100 increase in my policy.

Thank you for your prompt attention to this matter.

Scott Hardy
President and CEO of Top Class Actions LLC
800-557-2098 Office
480-323-2021 Fax
http://www.TopClassActions.com

*The listing of a company does not imply that the company acted illegally, only that an investigation is underway.*

USAA is a registered Trademark of the United Services Automobile Association

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