The Fair and Accurate Credit Transactions Act (FACT Act) amended the Fair Credit Reporting Act to mandate the use of risk-based pricing notices for consumers. The Dodd-Frank Act further amended the Fair Credit Reporting Act to require disclosure of consumers’ actual credit scores and related information if a credit score is used when taking adverse action or setting credit terms. As a general rule, a credit union must provide risk-based pricing notices to consumers when the credit union, based on a consumer credit report, either denies credit or extends credit on terms that are materially less favorable than the terms the credit union extends to other consumers.

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