As mandated by Section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection Act, new final rules issued by the Federal Reserve Board and the Federal Trade Commission (FTC) require creditors to disclose credit scores and information about credit scores to applicants for credit in adverse action and risk-based pricing notices. 

Creditors who use credit scores in denying applications for credit (or otherwise taking adverse action), and/or in granting or extending credit on material terms that are materially less favorable than the most favorable terms offered by them to a substantial proportion of their consumer customers, will need to modify their forms of adverse action and risk-based pricing notices. The rules prescribe model forms for these notices.

The new rules were issued on July 6, 2011, and modify the Federal Reserve Board’s Regulations B and V (12 CFR Parts 202 and 222) and the FTC’s risk-based pricing and model forms rules (16 CFR Parts 640 and 698). The new rules will become effective 30 days after publication in the Federal Register (which is expected imminently).