RISK BASED PRICING & ADVERSE ACTION LETTERS

Under the new section 615(h) of FCRA, a risk-based pricing notice must be provided when a consumer report is used in connection with providing credit with materially less favorable terms than the most favorable terms available to a substantial proportion of customers. In a transaction involving more than one consumer, a risk-based pricing notice must be provided to each consumer.

Additionally, if a creditor conducts a periodic account review and increases a consumer’s annual percentage rate because of a deteriorated credit report, the creditor must provide either a risk-based pricing/account review notice or adverse action notice to the consumer. 

The risk-based pricing notice rules apply only in connection with credit that is primarily for personal, household, or family purposes, but not with business credit or consumer lease transactions.

MenuTrak can amend these notices to the end of your credit reports to ensure dealership compliance with federal regulatory laws.

If your organization is interested in reducing risk, staying compliant, and streamlining your business process, CONTACT MaximTrak today.