Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
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The Federal Trade Commission seeks public comment on extending the information collection requirements for its Risk-Based Pricing Rule. This affects motor vehicle dealers and certain other entities under shared enforcement with the CFPB and is aimed at ensuring transparency when consumer credit terms are less favorable. The continuation would mean adhering to existing compliance efforts for another three years.
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Key Changes
- Extension of information collection requirements for the Risk-Based Pricing Rule
- Continuation of compliance efforts for three more years
- Focus on transparency in consumer credit terms
Obligations
What this law requires
Motor vehicle dealers must provide a risk-based pricing notice to consumers when the consumer report used results in material terms that are less favorable than those available to a substantial proportion of consumers.
Creditors must provide a risk-based pricing notice to consumers when credit terms offered are materially less favorable due to the consumer's credit report.
If a credit score of the consumer is used in setting the material terms of credit, creditors must disclose their credit scores and related information in the risk-based pricing notices.
Risk-based pricing notices must disclose the consumer's credit score if it was used to set the material terms of credit.
Entities must comply with the Fair Credit Reporting Risk-Based Pricing Regulations as defined in 16 CFR part 640.