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Information about the transaction the person must

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information about the transaction, the person must provide all of the information the consumerwould otherwise be entitled to if the consumer wished to dispute the debt under other provisionsof law applicable to the person.Risk-Based Pricing Notice – Section 615(h); 15 U.S.C. 1681m(h);12 CFR 1022, Subpart HSection 615(h) of the Fair Credit Reporting Act (FCRA) generally requires a user of consumerreports, such as a creditor, to provide a risk-based pricing notice to a consumer when thecreditor, based on a consumer report, extends credit to the consumer on terms that are“materially less favorable” than the terms the creditor has extended to other consumers. OnJanuary 15, 2010, the Federal Reserve and the Federal Trade Commission (FTC) published finalrules in theFederal Register(75 Fed. Reg. 2724) implementing this section of the FCRA.The risk-based pricing notice requirement is designed primarily to improve the accuracy ofconsumer reports by alerting consumers to the existence of negative information in theirconsumer reports so that the consumers can, if they choose, check their consumer reports foraccuracy and correct any inaccurate information. This notice provision is meant to complementan existing provision of the FCRA, Section 615(a), whereby a creditor that denies a consumer’sapplication for credit, based in whole or in part on information in a consumer’s report, mustprovide an adverse action notice. Section 615(h), covers the situation where credit is offered on“materially less favorable terms,” rather than being denied.The Dodd-Frank Act amended Section 615(h) of the FCRA to require a person to disclose aconsumer’s credit score and certain information relating to the credit score, if a credit score isused in making the credit decision. On July 15, 2011, the Federal Reserve Board and the FTCpublished final rules (effective August 15, 2011) amending the risk-based pricing regulation toeffect the Dodd-Frank Act changes (76 FR 41602). On December 21, 2011, the CFPB restatedthe FCRA regulations at 12 CFR Part 1022. (76 Fed. Reg. 79308)Key Definitions – 12 CFR 1022.71The following definitions pertain to the rules governing the risk-based pricing regulation:Material termsmeans in general:a.for open-end credit (except as provided in (b) and (d) below), the annual percentagerate (APR) required to be disclosed in the account opening disclosures required under
CFPB ConsumerLaws and RegulationsFCRACFPBManual V.2 (October 2012)FCRA 32Regulation Z. This does not include a temporary initial rate that is lower than the ratethat will apply when the temporary rate expires, any penalty rate that applies upon theoccurrence of specific events (such as a late payment), or any fixed APR option for ahome equity line of credit;b.for credit cards (other than a credit card used to access a home equity line of credit ora charge card), the APR that applies for purchases. For credit cards without apurchase APR, “material terms” means the APR that varies based on consumer reportinformation and that has the most significant financial impact on consumers;c.

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Term
Winter
Professor
NoProfessor
Tags
Credit history, Consumer Reports, Fair Credit Reporting Act, FCRA

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