Fair Credit Reporting Act: Risk Based Pricing

Short Description: The practice of offering different credit terms based on a consumer’s credit history is a major component of modern banking. This course discusses the rules and requirements regarding risk-based pricing as outlined in the Fair Credit Reporting Act.
SKU: P2747EN
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Risk-based pricing is the practice of offering materially more favorable or materially less favorable credit terms to consumers based on the consumers' credit history. The Fair Credit Reporting Act (FCRA) dictates the rules financial institutions are required to follow

This course includes an examination.

Learning Objectives:

  • Ensure all risk-based pricing disclosure policies at your bank are Fair Credit Reporting Act compliant.

Understand the content, form, and timing requirements of risk-based pricing disclosure notices. 

Course Outline:

  • General Requirements for Risk-Based Pricing Notices

o   Providing notice

o   Determining which customers must receive notice

o   Credit score proxy method of determining which customers must receive notice

o   Tiered pricing method of determining which customers must receive notice

o   Application to credit card issuers

o   Account review

  • Content, Form, and Timing of Risk-Based Pricing Notices
    • Content
    • Form
    • Timing
    • Application of certain automobile lending transactions
    • Timing requirements for contemporaneous purchase credit
    • Multiple credit scores
  • Exceptions

o   Application for specific terms

o   Adverse action notice

o   Prescreened solicitations

o   Loans secured by residential real property: credit score disclosure

o   Other extensions of credit: credit score disclosure

o   Credit score not available

  • Rules of Construction

o   One notice per credit transactions

o   Multi-party transactions

o   Multiple consumers: risk-based pricing notices

  • Multiple consumers: credit score disclosure notices  


0.83 hours


Audio, Hybrid



Products specifications
Course Language English
Length Range 31 - 60 Minutes
Length (Hours) 0.83
Course Features Audio
Course Features Mobile
Module Number(s) 5515EN