The recently issued Risk-Based Pricing Rule went into effect January 1, 2011.
According to the Rule, any company that uses a credit report or score in connection with a credit decision must notify a consumer when granting credit on “material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers.”
The Risk-Based Pricing Rule allows lenders to deliver an “exception notice” in lieu of the risk-based pricing notice. TransUnion has developed two solutions that fully support the model form exception notice in the Rule.
Produce the model form exception notice without the added time and expense of maintaining multiple score distribution graphs or creating the statement from multiple score interval tables.
- Available as an add-on to the online credit report, the score percentile ranking allows you to populate the percentage directly in the statement
- For example: “Your credit score ranks higher than [X percentage] of U.S. consumers”
- Available on the following scores:
- FICO® Classic 08
- FICO® Classic 04
- FICO® Classic 98
- FICO® Classic 95
- FICO® Auto 08
- FICO® Auto 04
Populate the score comparison section of the exception notice for an easy-to-read, consumer-friendly communication.
Get Risk-Based Pricing Solutions for your institution.