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FRS RIN: 7100-AD22 Publication ID: Spring 2009 
Title: Regulation V--Fair Credit Reporting Risk-Based Pricing (Docket No. R-1316) 
Abstract: The Federal Reserve Board (Board) and the Federal Trade Commission (FTC) published in the Federal Register on May 19, 2008, proposed regulations to implement section 311 of the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act. The proposed regulations generally would 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 offers or provides credit to the consumer on terms less favorable than the terms it offers or provides to other consumers. Risk-based pricing refers to the practice of using a consumer's credit report, which reflects his or her risk of nonpayment, in setting or adjusting the price and other terms of credit offered or extended to a particular consumer. Many creditors offer more favorable terms to consumers with better credit histories. The proposed rules would apply, with certain exceptions, to all creditors that engage in risk-based pricing. Under these rules, a risk-based pricing notice would generally be provided to the consumer after the terms of credit have been set, but before the consumer becomes contractually obligated on the credit transaction. The proposal provides a number of different approaches that creditors may use to identify the consumers to whom they must provide risk-based pricing notices. In addition, the proposed rule includes certain exceptions to the notice requirement. The most significant of the exceptions permits creditors, in lieu of providing a risk-based pricing notice to those consumers who receive less favorable terms, to provide all their consumers with the credit scores and explanatory information. The comment period on the proposal closed on August 18, 2008. 
Agency: Federal Reserve System(FRS)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 12 CFR 222.70 to 222.73    ...     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 15 USC 1681   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Board Requested Comment  05/19/2008  73 FR 28966   
Board Expects Further Action By  07/00/2009    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Amy Burk
Senior Attorney
Federal Reserve System
Division of Consumer and Community Affairs,
Phone:202 452-6408