Lenders Must Send Consumers Credit Score it Used
to Arrive at its Decision
ICFE Certified Credit Report Reviewers;
ICFE Certified Money Instruction Book Instructors;
ICFE Certified Home Equity Conversion Mortgage Specialists;
ICFE Certified SmartEquity Specialists;
Lenders must send consumers credit score
it used to arrive at its decision
A new rule benefiting borrowers comes from the Federal Reserve
and Federal Trade Commission and it begins July 21. Now, consumers
will get an explanation when they don't receive the best interest
rate or are turned down on a student loan, automobile loan or credit
This new regulation requires lenders to send the applicant a
free copy of the credit score it used to arrive at its decision.
The new Consumer Financial Protection Bureau will enforce these
new rules and the ruling only applies to lenders.
Consumers will now get a clear picture of how they are judged
by lenders. The lender's disclosure notice must provide the credit
score and the factors that pulled down the credit score and where
the score ranks nationally. The notice must also give the major
factors that decreased the credit score such as late payments or
maxing out credit cards. It will also explain how to get a free
copy your credit report.
Note: If a utility, telephone company, or insurance agency has
a special scoring system, it does not have to provide a free credit
score. Also, if a borrower received the best terms and lowest rates,
they may not receive a free score.