Allstate Insurance Co.

San Antonio, TX: (Feb-15-07) A class action lawsuit was filed against Allstate Insurance accusing it of discriminating against minority policyholders. The suit alleged Allstate used credit scoring to determine rates set for policyholders and that the formula acted as a kind of redlining for minorities and forced Hispanic and African American customers to pay more. Allstate has agreed to change its formula to include strictly financial factors such as the number of late bill payments or how often items were purchased on installment plans. Each of the six named plaintiffs was given $5,000. Minority customers who paid higher premiums under the old Allstate formula can seek $50 to $150 refunds under the settlement. Allstate did not admit to any wrongdoing. [KLTV NEWS: ALLSTATE SETTLEMENT]