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Frequent Contributor
Kozmo
Posts: 320
Registered: ‎07-08-2012
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Guidelines for obtaining a score from your lender

Hello,

 

I am aware that if you apply for credit and are rejected they are required to provide you a copy of the score/report they used correct?

 

Does this apply to a CLI? Just curious.

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pizzadude
Posts: 9,674
Registered: ‎01-28-2010
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Re: Guidelines for obtaining a score from your lender

You creditor will provide a score, which may or may not be a FICO® score. They will tell you the name of the CRA that supplied your credit report. You have to then contact the CRA and request a free copy of your credit report based on the denial of credit.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Frequent Contributor
Kozmo
Posts: 320
Registered: ‎07-08-2012
0

Re: Guidelines for obtaining a score from your lender

Oh ok, because when I tried to do a CLI for Helzberg...they rejected but in the letter there was no score.

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pizzadude
Posts: 9,674
Registered: ‎01-28-2010
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Re: Guidelines for obtaining a score from your lender


Kozmo wrote:

Oh ok, because when I tried to do a CLI for Helzberg...they rejected but in the letter there was no score.


I'm not certain if they are required to provide a score when you request a CLI ~ I know that some of my creditors do provide a score when they deny a CLI and others do not.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Mega Contributor
RobertEG
Posts: 18,462
Registered: ‎03-19-2007
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Re: Guidelines for obtaining a score from your lender

[ Edited ]

There are two basic types of "denials" under the FCRA.  One is for a complete denial of the credit, and the other is for a counter-offer for credit, but at substantially different terms than the better rate offered.

 

A complete denial of new credit or an unfavorable change in terms of existing credit is considered an "adverse action," and requires sending a notice of adverse action under FCRA 615(a),  A counter-offer of terms less favorable than requested or generally available to a substantial portion of consumers requires the sending of a notice of risk-based pricing under FCRA 615(h).  In my opinion, decline to grant a CLI would probably fall under neither, as it is not a denial of credit or an offer of credit for less favorable terms. 

 

Both stipulate that if the creditor's  decision was based in whole or in part on information obtained from your credit report, they must notify you of the name of the CRA whose CR they relied upon, and of your right to send their notice to that CRA within 90 days and request a free copy of your CR from that CRA.  The creditor is not the party responsible for providing the free credit report.

 

The Supreme Court has ruled, in Safeco v. Burr, that the simple fact that they pulled your CR is not sufficient basis for requiring a notice of adverse action and thus receipt of a free credit report.  It must be shown that they actually relied on the CR information as part of their decision-maling.  In the case of a CLI, if the creditor's denial was based upon their own internal records, there would be no requirement to send either type of notice.

 

Neither type of notice requires any advisement of the right to a free credit score.  However, if the lendor is a mortgage lendor, the additional provisions of section 809(g) may apply.


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