Fed and FTC Release New Credit Disclosure Rules
Credit unions and other lenders who use credit scores as a basis for credit terms will have to release credit scores to consumers, as a result of rules finalized by the Federal Reserve and the Federal Trade Commission. In their risk-based pricing notices and in letters turning down consumers for credit, credit unions and other lenders must include: The credit score and the range of possible credit scores; factors that negatively affected the credit scores; the date the score was determined; and the name of credit reporting agency.
The rule was mandated by last year’s financial overhaul law. It will take effect 30 days after it is published in the Federal Register.
To read the rule, go to: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20110706a1.pdf