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Nationwide faces class action over alleged auto-claims mix-up via C.L.U.E.
The complaint says C.L.U.E. data published in August 2024 was not corrected or marked as disputed after the driver disputed it three times, leaving him portrayed as a higher risk.
A national auto insurer is facing a proposed class action alleging it wrongly associated an Illinois driver with his father’s claims in underwriting records and then failed to correct the information, according to a filing reported by Insurance Business.
The lawsuit, proposed for federal court in Illinois on August 7, 2026, cites the Fair Credit Reporting Act and says Nationwide fed policyholder claim data into C.L.U.E., maintained through the Comprehensive Loss Underwriting Exchange system and distributed via LexisNexis to insurers for risk assessment.
The plaintiff alleges Nationwide linked the driver and his father’s separate policies despite the lack of matching identifiers, and that a C.L.U.E. report dated on or about August 6, 2024 carried claims the driver says were not his, depicting him as an unsafe driver with a tarnished claim history.
The filing says the driver disputed the mix-up three times through LexisNexis, and that Nationwide responded each time without correcting the record or flagging it as disputed, including letters dated August 20, September 22, and October 18, 2024. Under the FCRA provisions cited in the complaint, the insurer and data furnisher must investigate, correct or delete unverifiable information and mark ongoing disputes as disputed, the article notes.