Compliance Q&A: Credit Scores and Reg V

Question: Our bank uses the exception notice for the Regulation V, risk-based pricing credit score disclosures. If a loan applicant withdraws the loan request, is the bank still required to deliver the credit score exception notice to the applicant?

Answer: Regulation V, § 1022.72, only requires providing the risk-based pricing notice for loans where the terms of credit are set in accordance with the applicant’s credit score. Therefore, there is no requirement to provide the notice for loans that are not approved.

Regulation V, § 1022.72 – https://www.consumerfinance.gov/rules-policy/regulations/1022/72/

 


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