FINAL RULE ANALYSIS: Final Rule Requiring Creditors to Provide Certain Consumers with Risk-Based Pricing Notices

CUNA
February 5, 2010 | COMMENTS

The Fair and Accurate Credit Transactions (FACT) Act of 2003 amends the Fair Credit Reporting Act (FCRA), which regulates the collection, dissemination, and use of consumer credit information. The final rule implements the section of the FACT Act that requires risk-based notices.This is the last significant rule that will be issued under the FACT Act.

The Federal Reserve Board (Fed) and Federal Trade Commission (FTC) have jointly issued this new rule that will require creditors to provide consumers with a risk-based pricing notice in certain circumstances.

More specifically, such a notice will be required when, based on the consumer’s credit report, the creditor offers credit to the consumer on terms that are materially less favorable than those offered to a substantial proportion of other consumers by that lender. The rule provides certain exceptions to this requirement.

This rule will be in effect as of January 1, 2011. If you have any questions or need a copy of the final rule, please feel free to contact Senior Vice President & Deputy General Counsel Mary Dunn at mdunn@cuna.com or Senior Assistant General Counsel Jeff Bloch at jbloch@cuna.com or by telephone at (800) 356-9655, extension 6736 or 6732. You may also access the rule here.

> Read CUNA's Full Final Rule Analysis Here