Federal Reserve System: Board of Governors

United States: Federal Trade Commission (FTC)

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 5-8-2008 Agencies Issue Proposed Rules on Risk-Based Pricing Notices Federal Reserve System: Board of Governors United States: Federal Trade Commission (FTC) Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Federal Reserve System: Board of Governors and United States: Federal Trade Commission (FTC), "Agencies Issue Proposed Rules on Risk-Based Pricing Notices" (2008). YPFS Documents (Series 1). 7785. https://elischolar.library.yale.edu/ypfs-documents/7785 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. 5/7/2020 Federal Reserve Board - Agencies Issue Proposed Rules on Risk-Based Pricing Noticeshttps://www.federalreserve.gov/newsevents/pressreleases/bcreg20080508a.htm 1/2Joint Press ReleaseMay 08, 2008Agencies Issue Proposed Rules on Risk-Based Pricing NoticesBoard of Governors of the Federal Reserve SystemFederal Trade CommissionFor immediate releaseShareThe Federal Reserve Board and the Federal Trade Commission today announced proposed regulations thatgenerally would require a creditor to provide a consumer with a risk-based pricing notice when, based inwhole or in part on the consumer's credit report, the creditor offers or provides credit to the consumer onterms less favorable than the terms it offers or provides to other consumers.Risk-based pricing refers to the practice of using a consumer's credit report, which reflects his or her risk ofnonpayment, in setting or adjusting the price and other terms of credit offered or extended to a particularconsumer.  Many creditors offer more favorable terms to consumers with better credit histories.  The proposedrules would apply, with certain exceptions, to all creditors that engage in risk-based pricing.  Under theserules, a risk-based pricing notice would generally be provided to the consumer after the terms of credit havebeen set, but before the consumer becomes contractually obligated on the credit transaction.   The proposal provides a number of different approaches that creditors may use to identify the consumers towhom they must provide risk-based pricing notices.  In addition, the proposed rule includes certain exceptionsto the notice requirement.  The most significant of the exceptions permits creditors, in lieu of providing a risk-based pricing notice to those consumers who receive less favorable terms, to provide all of their consumerswith their credit scores and explanatory information.The proposal would implement section 311 of the Fair and Accurate Credit Transactions Act of 2003, whichamends the Fair Credit Reporting Act.The proposed rules are attached.  The proposal will soon be published in the Federal Register and thecomment period will end 90 days thereafter.Federal Register Notice:  8.8 MB PDF | TEXTCorrection:  1.54 MB PDF | TEXT  Proposal for CommentFACT Act Risk-Based Pricing RuleView CommentsMedia Contacts:Federal Reserve Board Susan Stawick 202-452-2955FTC Kellie Cosgrove Riley 202-326-22525/7/2020 Federal Reserve Board - Agencies Issue Proposed Rules on Risk-Based Pricing Noticeshttps://www.federalreserve.gov/newsevents/pressreleases/bcreg20080508a.htm 2/2Last Update: May 08, 2008

Agencies Issue Proposed Rules on Risk-Based Pricing Notices

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Agencies Issue Proposed Rules on Risk-Based Pricing Notices

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