We are investigating use of the Auction Insurance Agency’s “KO Book” , Which is now the Electronic KO Book. 

The KO book is used by auto auctions to determine creditworthiness of buyers.  When we did our initial investigation, we determined that in cases where the auction is qualifying the buyers as businesses, the KO book is likely legal because in that context it is not a consumer credit agency subject to the Fair Credit Reporting Act.

We are investigating complaints by individuals  had been involved with a failed dealership and later tries to seek work in the industry as an empoyee of another company who wants to buy vehicles at the auction.  Under the current system, these individuals may be listed in the KO book, with that information used to blacklist or keep the individual out of the auction as an agent of their employer. This effectively keeps these individuals from jobs as buyers. 

We have had two complaints relating to this practice.  If you have been denied employment or terminated as a buyer because of information in the KO book, please call my office at 317-662-4529. 

The information in this post came from multiple sources and is believed to be correcct if you believe any information in this post is factually incorrect, please contact my office.