From USA TODAY:
…Provisions of the 2003 Fair and Accurate Credit Transactions Act — the law that requires credit bureaus to give you a free annual report — will impose new disclosure obligations that could encourage more lenders to provide customers with a free credit score.
Under “risk-based pricing” provisions that took effect Jan. 1, lenders are required to send a notice to loan applicants who receive a loan with a higher rate than the best rate available. The notice must also explain how the applicant can get a free credit report.
However, the law gives lenders who don’t want to wrestle with these notices — and the rules governing who must receive them are complicated — an alternative. If they send all loan applicants a copy of their credit score, they don’t have to provide risk-based pricing notices…
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