Risk Based Pricing Notice or Credit Score Disclosure Notice

[veracious]

Anyone receive either of these notices with a recent credit application?

Risk-based Pricing Notice was due to go into effect  January 1, 2011.

I think the Credit Score Disclosure notice is scheduled to begin in July  2011.

I'm confused because there seems to be mandatory compliance , but the lender can choose

which method to use.

Anyone know when these so-called protections will begin?

[smc733]

When I got my Chase Amazon Visa card and my Discover More card (both this year), I got the "Your credit report and the price you pay for credit".  The terms you have been given may be less favorable than those granted to applicants with better... blah blah.

On discover, I got a higher APR (15.99) b/c I app'd for the student card, I think (which is just a regular More card), and Chase I got a higher APR because I didn't get a credit limit that qualified me for the Signature (I got $3k, signature requires $5k), and

Signature:  13.24

Plat: 18.24 or 21.24 (I got 18.24)

[veracious]

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@smc733 wrote:

When I got my Chase Amazon Visa card and my Discover More card (both this year), I got the "Your credit report and the price you pay for credit".  The terms you have been given may be less favorable than those granted to applicants with better... blah blah.

On discover, I got a higher APR (15.99) b/c I app'd for the student card, I think (which is just a regular More card), and Chase I got a higher APR because I didn't get a credit limit that qualified me for the Signature (I got $3k, signature requires $5k), and

Signature:  13.24

Plat: 18.24 or 21.24 (I got 18.24)

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So.....    You get generic gibberish and non descriptive reasons  and an absence of any meaningful reasoning ???

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eta:      Google Search___ "risk based pricing notice example"    revealed these interesting links.

        Here are some that I found:   http://www.philadelphiafed.org/bank-resources/publications/consumer-compliance-outlook/2010/fourth-q...  

http://docs.google.com/viewer?a=v&q=cache:48axUe_KKiUJ:www.kpmg.com/US/en/IssuesAndInsights/Articles...

http://docs.google.com/viewer?a=v&q=cache:5iIImXf2li0J:www.nada.org/NR/rdonlyres/4F6AF54B-2BDA-4CAD-...

[Anonymous]

Jan 1st - Risk Based Pricing Notice

This is for approvals with "less than favorable terms...".   The lender has the option to send this specific notice to some people (defined by the law), or they can just send *everyone* pretty much the same letter with a score.  Most lenders went with the score, it's less complicated.  Has nothing to do with the other law.  No law covered this before.  If you got approved, but with sky high rates, tough luck.  Go buy your own report and figure it out yourself.  Well, now you don't have to.

July 21st - Free Access to Credit Scores (FACS)

This is for Adverse Action, like getting denied.  It is adding onto the laws that have been in place for years, where you're provided a standard letter with vague reasons about why your credit sucks and they won't lend you money.  Now they have to slap a score on there somewhere as well. 

I think what's confusing you is that the lenders were given the option to send your scores instead of a Risk Based Pricing Notice.  That has nothing to do with FACS.  Two separate laws for two separate situations.  While there are certain times they may overlap, AA + score is the one you'd get.

[veracious]

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@Anonymous wrote:

Jan 1st - Risk Based Pricing Notice

This is for approvals with "less than favorable terms...".   The lender has the option to send this specific notice to some people (defined by the law), or they can just send *everyone* pretty much the same letter with a score.  Most lenders went with the score, it's less complicated.  Has nothing to do with the other law.  No law covered this before.  If you got approved, but with sky high rates, tough luck.  Go buy your own report and figure it out yourself.  Well, now you don't have to.

July 21st - Free Access to Credit Scores (FACS)

This is for Adverse Action, like getting denied.  It is adding onto the laws that have been in place for years, where you're provided a standard letter with vague reasons about why your credit sucks and they won't lend you money.  Now they have to slap a score on there somewhere as well. 

I think what's confusing you is that the lenders were given the option to send your scores instead of a Risk Based Pricing Notice.  That has nothing to do with FACS.  Two separate laws for two separate situations.  While there are certain times they may overlap, AA + score is the one you'd get.

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Thanks for the reply  shadow2k.

Another confusing aspect I read about is that lenders can have up to ( 8 or 9)  tiers to judge your credit worthiness.

Somehow, this is related to your credit profile.    I presume these tiers would be proprietary, so any decision made about your profile

would not be standard.  The only way to be fair would be to include your Credit score and an explanation of how it was derived.

Do you or anyone  know an explanation of  these  tiers?

Thanks

[MarineVietVet]

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@veracious wrote:

Thanks for the reply  shadow2k.

Another confusing aspect I read about is that lenders can have up to ( 8 or 9)  tiers to judge your credit worthiness.

Somehow, this is related to your credit profile.    I presume these tiers would be proprietary, so any decision made about your profile

would not be standard.  The only way to be fair would be to include your Credit score and an explanation of how it was derived.

Do you or anyone  know an explanation of  these  tiers?

Thanks

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If you haven't already seen it there is a blog entry here at myFICO talking about Risk Based Pricing. It's a good place to ask questions.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".