Information about the transaction the person must

information about the transaction, the person must provide all of the information the consumer
would otherwise be entitled to if the consumer wished to dispute the debt under other provisions
of law applicable to the person.
Risk-Based Pricing Notice – Section 615(h); 15 U.S.C. 1681m(h);
12 CFR 1022, Subpart H
Section 615(h) of the Fair Credit Reporting Act (FCRA) generally requires a user of consumer
reports, such as a creditor, to provide a risk-based pricing notice to a consumer when the
creditor, 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. On
January 15, 2010, the Federal Reserve and the Federal Trade Commission (FTC) published final
rules in the Federal Register (75 Fed. Reg. 2724) implementing this section of the FCRA.
The risk-based pricing notice requirement is designed primarily to improve the accuracy of
consumer reports by alerting consumers to the existence of negative information in their
consumer reports so that the consumers can, if they choose, check their consumer reports for
accuracy and correct any inaccurate information. This notice provision is meant to complement
an existing provision of the FCRA, Section 615(a), whereby a creditor that denies a consumer’s
application for credit, based in whole or in part on information in a consumer’s report, must
provide 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 a
consumer’s credit score and certain information relating to the credit score, if a credit score is
used in making the credit decision. On July 15, 2011, the Federal Reserve Board and the FTC
published final rules (effective August 15, 2011) amending the risk-based pricing regulation to
effect the Dodd-Frank Act changes (76 FR 41602). On December 21, 2011, the CFPB restated
the FCRA regulations at 12 CFR Part 1022. (76 Fed. Reg. 79308)
Key Definitions – 12 CFR 1022.71
The following definitions pertain to the rules governing the risk-based pricing regulation:
Material terms means in general:
a. for open-end credit (except as provided in (b) and (d) below), the annual percentage
rate (APR) required to be disclosed in the account opening disclosures required under

CFPB Consumer
Laws and Regulations FCRA
CFPB Manual V.2 (October 2012) FCRA 32
Regulation Z. This does not include a temporary initial rate that is lower than the rate
that will apply when the temporary rate expires, any penalty rate that applies upon the
occurrence of specific events (such as a late payment), or any fixed APR option for a
home equity line of credit;
b. for credit cards (other than a credit card used to access a home equity line of credit or
a charge card), the APR that applies for purchases. For credit cards without a
purchase APR, “material terms” means the APR that varies based on consumer report
information and that has the most significant financial impact on consumers;
c.