Federal Reserve Implements Provisions of the FACT Act into Final Rules
Today, the Federal Reserve System, the Board of Governors and the Federal Trade Commission approved joint final rules which will implement the risk-based pricing provisions of the FACT Act.
The Final Rules requires lenders to issue consumers a risk-based pricing notice when, based off the their credit report, the consumer receives less favorable loan terms compared to others. Those who receive this notice will be able to obtain a free credit report to check for accuracy.
Final Rules also allows lenders to provide their consumers with a free credit score and information about their score instead of providing a risk-based pricing notice. These rules are effective on January 1, 2011.