Lenders now required to disclose credit report access
By Credit.com Staff
Beginning on January 1, lenders were required to alert consumers when their credit report was accessed to determine their creditworthiness, and when they are given worse terms on a loan than others may have received, according to a report from the Dallas Morning News. This is called risk-based pricing, and is typically seen when lenders have varying interest rates for different customers based on their credit history.
However, lenders also have the option of simply providing consumers with a free credit score and information about it, the report said. Currently, this rule only applies when a consumer applies for a home loan.
Risk-based pricing is also prevalent among credit card lenders, which will use a consumer's credit score to determine the interest rates they pay on their debt, and also whether they qualify for an account at all.