Score Disclosure Mailings
As of January 1, 2011, all lenders were required to be in compliance with the Federal Reserve Board and the Federal Trade Commission’s regulations that put into effect the risk-based pricing provisions of Section 311 of the Fair and Accurate Credit Transactions Act of 2003 (“FACT Act”), which amended the Fair Credit Reporting Act (“FCRA”).
In general, the final rules require a creditor to provide a consumer with a risk-based pricing notice when, based in whole or in part on the consumer’s credit report, the creditor grants, extends or otherwise provides credit to the consumer on material terms that are materially less favorable than the most favorable terms it grants to a substantial portion of its other consumers. Several methods are available for identifying customers that must receive the risk-based notices and some exceptions do apply.
How Can UniversalCIS Help?
UniversalCIS can generate and deliver the required exception notice with each credit report at no additional cost. The notice includes the required score used to set the material terms disclosure and corresponding national score distribution.
The FACT ACT Mail Merge (FAMM) feature allows us to provide our customers with a Credit Score Disclosure Form mailing service. For a nominal fee, the system will collect the necessary information nightly from the previous day’s orders to generate FACT Act Score Disclosure letters to be sent out to consumers. This ensures that all applicants receive the proper notice in a clear and conspicuous manner and that the notice is segregated from any other material provided to the consumer; keeping your institution in compliance with the regulation.
Please call your Sales Representative to find out more!