Risk Based Pricing Disclosure for Credit Cards and Other Loans
The Associated Press reported last week that the Federal Reserve and the Federal Trade Commission announced its consideration of regulations requiring credit card companies and others making loans to disclose to consumers when the lender is using the borrower’s poor credit history to justify an increase in interest rates.
The notice would not be necessary if the lender provides the consumer with their credit score and explanatory information. A Washington Post report suggests that the exception threatens to swallow the rule - creating a situation where lenders merely comply with the exception rather than disclose risk-based pricing.
The proposal is currently open for public comment.
