An important new amendment to the Fair Credit Reporting Act, known as the
Risk-Based Pricing Rule, went into effect on January 1, 2011. Now, lenders are
required to notify a consumer when a lending decision, based on their credit
score or credit report, results in credit terms that are less favorable than
those offered to other borrowers. Less favorable terms may include a higher
interest rate or larger down payment requirement. Notification by the lender
will be in the form of a disclosure notice that is either enclosed with the
credit approval package or sent separately to the consumer.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.