credit score delivery timing | For Bankers. From Bankers

Skip to content

BOL Conferences

BankersOnline.com Forums Banker Forums FCRA credit score delivery timing

Page 2 of 2

2

Thread Options

#255479 - 10/20/04 07:55 PM Re: credit score delivery timing
Nanwa Power Poster Joined: Oct 2001 Posts: 5,564 Clintonville, WI, USA	OK, we are a very small bank. Under $100 million. We are NOT a consumer reporting agency for FCRA. When we make a loan, we look at the customer's income and repayment ability, delinquencies of past debts, value of collateral, depsoit history with our bank, etc. We do not use a credit scoring process of our own, and the CRA's credit score may or may not be a factor in our decision. Are we required to provide a Notice to Home Applicants and a Notice of Credit Scores? _________________________ Member of the National Sarcasm Society - like we need your support!
Return to Top

#255480 - 10/20/04 09:00 PM Re: credit score delivery timing
Comply 101 Platinum Poster Joined: Jul 2001 Posts: 708	Any lender who uses a consumer credit score in connection with an application by consumer for closed or open end loan for consumer purpose secured by 1 to 4 units of residential property shall provide the credit score. I would interpret that to mean if you don't use the credit score in any way (check your loan policies), you don't need to give consumer their score or explain it. Last edited by David H; 10/20/04 09:01 PM. _________________________ CRCM CAMs
Return to Top

#255481 - 10/21/04 03:11 PM Re: credit score delivery timing
ToTo Platinum Poster Joined: Apr 2004 Posts: 595 OZ	At yesterday's BOL FACT act webinar the advice was given that if you get a credit score, even if you don't use it, you should give the notice. How will you prove you didn't use it? The rest of the advice was, if you don't use it, contact the credit bureau and have them remove it from the credit reports you receive.
Return to Top

#255482 - 10/21/04 09:37 PM Re: credit score delivery timing
travelgirl 100 Club Joined: Mar 2004 Posts: 223 Minnesota	I have another Section 212 related question. Are we required to give the "Notice to Home Loan Applicants" if we USE a credit score in connection with the application or only if we OBTAIN it? My interpretation from the law is that we would have to provide it if we USE a credit score for these types of loans (open/closed end secured by 1-4 family). What about the "Credit Score Notice"? Are we required to give it if we USE a credit score or only OBTAIN a credit score. Again it looks like the law in section 212 states if we USE it, but in looking over my notes from yesterday's webinar it states if we OBTAIN a credit score we must give this notice. Any suggestions on the definition of use? We do not use credit scores in making loan decisions even though they appear on the credit report. Would we need to give these notices if we don't use them?
Return to Top

#255483 - 12/02/04 04:45 PM Re: credit score delivery timing
Retired DQ 10K Club Joined: Dec 2002 Posts: 40,766 Turnpike Exit 10	"Notice May NOT Be Included in TILA Disclosures One thing the statute prohibits is including the notice in the initial disclosures under the Truth in Lending Act. Whenever and however you do provide the notice, you must do it in a way that is clear and conspicuous, but not, in any event, with the TILA initial disclosures." From BOL article... We want to send our credit score disclosures out with our TILAs, etc. Does anyone know where I can find this part of the statute? I've looked and loooked... _________________________ Get your facts first, then you can distort them as you please. - Mark Twain
Return to Top

#255484 - 12/02/04 04:54 PM Re: credit score delivery timing
Reads Regs Diamond Poster Joined: Nov 2004 Posts: 2,309	I think this has to do with the section 217 disclosures regarding negative information. See section 623(a)(7)(B)(ii) of the amended FCRA. "(B) Time of notice. (i) In general. The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603(p). (ii) Coordination with new account disclosures. If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under section 127(a) of the Truth in Lending Act ." Section 127 of TILA deals with open end credit plans. Last edited by Reg. reader; 12/02/04 04:55 PM. _________________________ Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.
Return to Top

#255485 - 12/02/04 05:04 PM Re: credit score delivery timing
Retired DQ 10K Club Joined: Dec 2002 Posts: 40,766 Turnpike Exit 10	I found it, thanks, I hate it when I second guess myself! _________________________ Get your facts first, then you can distort them as you please. - Mark Twain
Return to Top

#255486 - 12/02/04 06:54 PM Re: credit score delivery timing
Truffle Royale 10K Club Joined: Jul 2003 Posts: 17,400	Quote: I think this has to do with the section 217 disclosures regarding negative information . See section 623(a)(7)(B)(ii) of the amended FCRA. "(B) Time of notice. (i) In general. The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603(p). (ii) Coordination with new account disclosures. If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under section 127(a) of the Truth in Lending Act ." Section 127 of TILA deals with open end credit plans. So am I correct that the Notice to Home Loan Applicant and Disclosure of Credit Score Information CAN go out in the same envelope as the TIL and GFE?
Return to Top

#255487 - 12/02/04 07:12 PM Re: credit score delivery timing
Retired DQ 10K Club Joined: Dec 2002 Posts: 40,766 Turnpike Exit 10	I couldn't find anything expressly prohibiting it. _________________________ Get your facts first, then you can distort them as you please. - Mark Twain
Return to Top

#255488 - 12/02/04 07:33 PM Re: credit score delivery timing
Truffle Royale 10K Club Joined: Jul 2003 Posts: 17,400	Thanks. I can't either so I'm recommending we send the stuff together so we know it (1) all goes out and (2) in a timely fashion.
Return to Top

#255489 - 12/03/04 02:06 PM Re: credit score delivery timing
renniks Diamond Poster Joined: Sep 2003 Posts: 2,162 New England	We are also sending this disclosure and credit score with the initial disclosures.
Return to Top

#255490 - 12/03/04 02:18 PM Re: credit score delivery timing
Dan Persfull 10K Club Joined: Aug 2002 Posts: 47,532 Bloomington, IN	Quote: So am I correct that the Notice to Home Loan Applicant and Disclosure of Credit Score Information CAN go out in the same envelope as the TIL and GFE? IMO yes. And it is also my opinion you can send the 217 notice in the same envelope. As was previously mention 127(a) deals with the initial disclosures for open-end credit. My reading of this is the 217 disclosure cannot be included (embedded) within the 127(a) disclosure, but I see no problem sending a separate clear and conspicuous disclosure with the materials. _________________________ The opinions expressed are mine and they are not to be taken as legal advice.
Return to Top

Page 2 of 2

2

Previous Thread

Previous Thread

View All Threads

Next Thread

Hop To

Moderator: Jack Holzknecht, Mary Beth Guard