Wednesday, November 10, 2010

Risk Based Pricing Rule - Further Clarification

Some of my dealer friends are thinking that compliance with this rule will be harder than it's going to be.


Let's look at it closer:

Starting Jan 1st 2011, you will just have to give consumers a new notice, called a Risk Based Pricing Notice.

The Government means to protect the consumers who, because of bad credit scores, won't get the same credit terms as those with good credit scores.

This notice is meant to make these consumers aware of this.

So dealers need to give EVERY applicant for credit - whether or not you get them financed - a notice that:

1. Shows them their credit score and which CRA it was pulled from,

2. Tells them what a credit score is and steps they can take to change it,

3. Displays a bar chart or other visual that shows where their credit score compares with the national average.

These notices will be available (at an additional charge) from the vendors that you use to pull your credit reports.


Next Post: My original rant about the Risk Based Pricing Rule: CLICK HERE

The post also contains a link to the full 202 page text of the rule... exciting.

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