Federal Reserve, FTC Complete Changes To Risk-Based Pricing Rule; CFPB to Enforce

The Federal Trade Commission (FTC) and the Federal Reserve Board published final changes to the risk-based pricing rule that requires lenders to disclose credit score information to consumers whenever a credit score is used in setting or adjusting credit terms.

Under the Fair Credit Reporting Act (FCRA), the agencies since Jan. 1 have required creditors to notify consumers when they are provided credit on less-favorable terms, and that decision is based on the consumer’s credit report (41 DER A-12, 3/2/11).

The final rule completed July 6 implements provisions of the Dodd-Frank Wall Street Reform and Consumer Act, which ...