Fed Issues Final Credit Score Disclosure Requirement Rule Under Dodd Frank Act

The Federal Reserve Board (FRB) and the Federal Trade Commission (FTC) have issued final rules (see here and here) to implement the credit score disclosure requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. If a credit score is used in setting material terms of credit or in taking adverse action, the statute requires creditors to disclose credit scores and related information to consumers in notices under the Fair Credit Reporting Act (FCRA). The final rules amend Regulation V (Fair Credit Reporting) to revise the content requirements for risk-based pricing notices, and to add related model forms that reflect the new credit score disclosure requirements. The FRB is issuing these final rules jointly with the FTC. The final rules also amend certain model notices in Regulation B (Equal Credit Opportunity), which combine the adverse action notice requirements for Regulation B and the FCRA, to reflect the new credit score disclosure requirements. The rules under Regulations V and B are effective 30 days after the date of publication in the Federal Register.