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#1375798 - 04/16/10 08:18 PM Credit Score Disclosure
JW QC Audit Offline
Joined: Aug 2008
Posts: 50
FCRA (Consumer Credit Score Disclosure when credit report is pulled)

The company has a pre-qualification process, we obtain a credit report for this process. must be delivered to the customer, the credit score disclosure?

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#1375995 - 04/17/10 04:31 AM Re: Credit Score Disclosure JW QC Audit
Princess Romeo Offline

Power Poster
Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
Here is what FCRA states regarding mortgage lenders providing credit scores:

g) Disclosure of Credit Scores by Certain Mortgage Lenders
(1) In general. Any person who makes or arranges loans and who uses a consumer credit score, as defined in subsection (f), in connection with an application initiated or sought by a consumer for a closed end loan or the establishment of an open end loan for a consumer purpose that is secured by 1 to 4 units of residential real property (hereafter in this subsection referred to as the "lender") shall provide the following to the consumer as soon as reasonably practicable:

You could argue that a pre-qualification is not secured by anything, so you wouldn't need to provide the disclosure until the customer identifies a property and moves forward with an application for a loan to be secured by that property.
Regulations are a poor substitute for ethics.
Just sayin'

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#1383100 - 04/28/10 06:37 PM Re: Credit Score Disclosure Princess Romeo
JW QC Audit Offline
Joined: Aug 2008
Posts: 50

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#1384266 - 04/30/10 03:16 PM Re: Credit Score Disclosure JW QC Audit
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,839
Bloomington, IN
I will have to take a different opinion.

A prequalification will be secured by a 1-4 residential real property. The FCRA does not have the designation that a property has to be identified.

No credit request is "secured" by the collateral until the request is consummated. So you could try to make the argument the disclosure is not required for any credit request until it is consummated, and we all know that argument isn't going to fly.

IMO, if the credit score was used in your credit decision then you must provide the disclosure. If you declined the prequalification request it is most definitely required.
The opinions expressed are mine and they are not to be taken as legal advice.

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