FCRA / RBP – Are there exceptions to providing risk-based pricing notices?

Compliance > FCRA
Q:  Are there exceptions to providing risk-based pricing notices?   
 
A:   Yes, the regulation contains various exceptions, as follows:
 
a. If the consumer applies for and receives specific credit terms, no risk-based pricing notice is required.  The specific credit terms cannot be specified by someone after they have obtained the consumer’s credit report.
 
b. A risk-based pricing notice does not need to be provided if the consumer was provided with an adverse action notice.
 
c. A person need not provide a risk-based pricing notice in connection with a prescreened solicitation, where a person obtained a prescreened consumer report which is used for the purpose of making a firm offer of credit to the consumer.
 
d. For loans secured by residential real property, a person need not provide a risk-based pricing notice if the consumer requests an extension of credit that is or will be secured by 1-to-4 units of real property and the person provides specific disclosures to the consumer, including credit score information and the Notice to the Home Loan Applicant.
 
e. For loans other than those that is or will be secured by residential real estate, a person need not provide a risk-based pricing notice if the consumer requests an extension of credit other than credit that is or will be secured by 1-to-4 units of real property and the person provides specific disclosures to the consumer, including credit score information. 
 
f. A person is not required to provide a risk-based pricing notice if the person regularly obtains credit scores, but a credit score is not available, and the person provides an alternative notice.
 
Model forms are available within the Regulation, Appendix H.
 
 

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