Federal Reserve System Webinar
Learn about new regulatory requirements for the Risk-Based Pricing notice.
New Adverse Action Credit Score Disclosure Requirements
What are you doing to prepare for the new credit score disclosure requirements that become effective July 21, 2011?
Winning Strategies for Compliance With the Risk-Based Pricing Rule
View this comprehensive webinar to learn how to comply with the new Risk-Based Pricing requirements, understand the rule's impact on your business and anticipate consumer questions and challenges before they arise.
In the news: Lenders facing critical choices
A recent American Banker article addresses the Risk-Based Pricing Rule and its impact on the lending industry.
Risk-Based Pricing Compliance Tools
We can help you comply today!
Experian can help you comply with the Risk-Based Pricing Rule.
Risk-Based Pricing - Frequently Asked Questions
Find answers in this comprehensive document developed by Experian credit experts.
- How do I comply?
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Did you know?
Important Risk-Based Pricing Notice Information
If your institution plans to comply with the upcoming rule via the Risk-based Pricing Notice option, the following Experian contact information should be included in the notices:
Experian
701 Experian Parkway
P.O. Box 2002
Allen, TX 75013
1 888 EXPERIAN (1 888 397 3742)
www.experian.com/reportaccess
For additional information contact your local Experian sales representative or call 888 564 5574
Risk-Based Pricing Rule
The deadline for the new Risk-Based Pricing Rule has passed. Are you in compliance?
Effective Jan. 1, 2011, companies that use a credit report or score in connection with a credit decision must send notice to a consumer when, based on a credit report or score, the company grants credit on material terms that are not the most favorable terms offered to a substantial proportion of consumers. In most cases, the rule defines “material terms” as the loan’s Annual Percentage Rate.
What is Risk-Based Pricing?
Risk-based pricing refers to the practice of setting or adjusting the interest rate and other terms of credit provided to a particular consumer based on the consumer’s credit data and other factors used to measure risk. The Risk-Based Pricing Rule was established by the Federal Reserve Board and the Federal Trade Commission (FTC) due to a concern that consumers are not adequately informed of the effect that credit report data has on the APR consumers are charged when obtaining new credit. As a result, the Board and the FTC published this new rule, which organizations were required to comply with effective Jan. 1, 2011.
Table and Graph data updated April 2011.
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To determine the most appropriate compliance method, organizations should begin to evaluate their underwriting processes to gain an understanding of the rule’s impact on both resources and technologies and prepare to respond to consumer questions about the credit information provided.
Not only does the rule establish different methods to determine if a risk-based pricing notice is necessary, but it also provides a variety of options to structure a successful compliance program.
To find out how Experian can help you comply with the Risk-Based Pricing Rule, contact your local Experian sales representative or call 1 888 414 1120.
Note: While Experian is happy to provide our observations related to the new Risk-Based Pricing Rule, please work with your own legal counsel to ensure that you comply with your obligations under the rule.
Do you need help complying with the Risk-Based Pricing Rule?
To find out how Experian can help you comply with the Risk-Based Pricing Rule, contact your local Experian sales representative or call 1 888 414 1120.