ALPHEN AAN DEN RIJN, Netherlands — Wolters Kluwer Financial Services is offering dealers and lenders solutions to help them comply with the new federal risk-based pricing rule, according to a recent release from the company.
As of Jan. 1, auto, marine, and RV dealers, lenders and third-party service providers must notify consumers when they receive materially less favorable credit terms than others based on consumer report information.
The Federal Reserve Board and Federal Trade Commission issued the risk-based pricing rule to offset the existing adverse action notice provisions of the Fair Credit Reporting Act, requiring creditors to notify consumers only if they have been denied credit based on information in their credit report. Under the new rule, dealers, lenders and service providers must provide consumers who will receive less favorable credit terms a risk-based pricing notice before they sign a credit agreement.
The exception to the risk-based pricing rule allows dealers and lenders to provide a credit score disclosure notice to all customers who apply for credit. The exception notice must include the consumer’s credit score, the date it was created, its source, and information about the range of scores and how lenders use them.
Wolters Kluwer Financial Services’ solutions for compliance include AppOne, Risk-based Pricing Toolkit, and Risk-based Pricing Notice Forms.
“Our compliance solutions provide dealers, lenders, and service providers with resources to help them quickly and easily meet the requirements of the new rule,” said Lee Domingue, CEO of Indirect Lending at Wolters Kluwer Financial Services, in the release. “These latest offerings showcase Wolters Kluwer Financial Services’ commitment to helping our indirect lending customers improve their compliance programs and increase their efficiency.”
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