The FRB and FTC issued a final rule that generally requires creditors to provide a notice when, based on a credit report, they make a loan with less favorable terms than they would give to other consumers. Consumers who receive this risk-based pricing notice will be able to obtain a free credit report to check the accuracy of the report. The rule provides creditors with several methods for determining which consumers must receive risk-based pricing notices. As an alternative to providing risk-based pricing notices, the rule permit creditors to provide consumers who apply for credit with a free credit score and information about their score. The rule implements Section 311 of the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act. The rule is effective January 1, 2011. Click here for the rule.
Alert December 29, 2009