Risk-Based Pricing Regulation

Federal Disclosure Notice

On December 22, 2009, the FTC and FRB released the final rules for implementation of section 311 of the FACT Act. Section 311 requires automotive dealers and other creditors to provide notice to consumers when they are granted materially less favorable lending terms than other consumers, based on data included in their credit report. The rule went into effect on January 1, 2011.

The regulation offers dealers two options for compliance:

    Risk-Based Pricing Notice: Use a prescribed method for determining if a consumer is qualified to receive a Risk-Based Pricing notification.

    CSD Exception: Provide a Credit Score Disclosure to every consumer.

In accordance with NADA’s recommendation, CoreLogic Credco offers the Credit Score Disclosure Exception as a compliance solution for the Risk-Based Pricing regulation.

Product Highlights

Credco’s Risk-Based Pricing compliant CSD includes:

  • Model forms to ensure consistent disclosure information
  • A user-friendly Q&A format
  • Consumer score comparison data
  • Automatically fulfilled with every Credco credit report – AT NO ADDITIONAL CHARGE!

As part of our ongoing commitment to help ensure your compliance with State and Federal Law, a Risk-Based Pricing compliant Credit Score Disclosure (CSD) will automatically be provided with each Credco credit report ordered – FREE of charge! The risk-based pricing requirements supercede the state-based Credit Score Disclosure requirements for California and Minnesota.

"It’s part of our ongoing commitment to help your dealership remain compliant so you can focus on sales, while protecting your customers’ right to stay informed on credit inquiries."

Patrick Colbert
SVP Sales & Operations CoreLogic Credco

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