Fed and FTC Propose Rules Regarding Credit Score Disclosures

By | March 1, 2011

The Federal Reserve Board and the Federal Trade Commission, or FTC, have  proposed regulations regarding the credit score disclosure requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The statute requires creditors to disclose credit scores and related information to consumers in risk-based pricing and adverse action notices under the Fair Credit Reporting Act, or FCRA, if a credit score was used in setting the credit terms or taking adverse action.

The Board, jointly with the FTC, proposes to amend Regulation V (Fair Credit Reporting) to revise the content requirements for risk-based pricing notices and to add related model forms to reflect the new credit score disclosure requirements.

 The Board also proposes to amend certain model notices in Regulation B (Equal Credit Opportunity), which combine the adverse action notice requirements for both Regulation B and the FCRA. The proposed amendments would revise the model notices to incorporate the new credit score disclosure requirements.

 Check frequently for updates on the Dodd-Frank Act and other important securities law matters.

Contact Steve Quinlivan for more information.