Experian has announced their new range of services and products that will aim to help clients to comply with requirements set out by the Risk-Based Pricing Rule.
The Federal Reserve Board and the Federal Trade Commission are requiring that lenders send a Risk-Based Pricing Notice to their borrowers if they are not providing the consumer with the best rate. The plan will be officially implemented on January 1st, 2011.
Andrew Sheehan of Experian Consumer Information Services says that lenders should “begin their preparations” to meet the terms of the regulation. The company will provide its clients with products and services to help them fulfill the terms of the regulation, such as credit score disclosure products, pricing services, VantageScore, and custom consulting.
For many lenders, a Risk-Based Pricing Notice may be desirable when they want to minimize costs. The notices will be mailed to consumers who do not have the best rates or terms for their credit when they apply.
The regulation will make it necessary to send the notices before the consumer signs a contract, but after the terms of the rates are set. Experian says that it will be able to help lenders figure out who should be sent a notice through the use of its programs and services.
