May 2, 2014 at 12:34 pm #5800CitizenbankParticipant
When completing an adverse action notice in a case where the customer has no credit score, we have debated whether the FCRA notice should be included. Technically, there is no score so how could the score have been used in making the determination? In this case, can the FCRA notice be left off?May 5, 2014 at 3:13 pm #5814rcooperKeymaster
If a denial is based on any information in a credit report – score or otherwise – you need to include the FCRA notice. If a credit score isn’t available you don’t need to include the credit score information (see below). Also, if you are complying with the Risked Based Pricing rules by using the exception notices, then you’ll still need to provide the “No Score Available” or other applicable notice.
§ 615. Requirements on users of consumer reports [15 U.S.C. § 1681m]
(a) Duties of users taking adverse actions on the basis of information contained in consumer reports. If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall:
(1) provide oral, written, or electronic notice of the adverse action to the consumer;
(2) provide to the consumer written or electronic disclosure
(A) of a numerical credit score as defined in section 609(f)(2)(A) used by such per- son in taking any adverse action based in whole or in part on any information in a consumer report; and
(B) of the information set forth in subparagraphs (B) through (E) of section 609(f)(1);
Note: paragraph (2) above inserted by § 1100F of the Dodd-Frank Act, effective 7/21/2011.
From the Reg V final rule:
Disclosure that no credit score is available. In some cases, a creditor may try to obtain a credit score for an applicant, but the applicant may have insufficient credit history for the consumer reporting agency to generate a credit score. One commenter asked that the creditor have the option to amend the model forms to provide the applicant notice that no credit score was available from a consumer reporting agency in the space available on the model forms for the credit information disclosure.
Section 1100F only applies when a creditor uses a credit score in setting the material terms of credit. The creditor cannot and is not required to disclose credit score information if an applicant has no credit score. Nothing in section 1100F of the Dodd-Frank Act prevents a creditor from providing the applicant notice that no credit score was available from a consumer reporting agency, although section 1100F does not require such notice.
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