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#278550 - 11/22/04 08:20 PM Negative Pricing Disclosure
Comply Offline
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Joined: Oct 2003
Posts: 291
Where can I find the sample lanquage for a negative pricing disclosure. Or is the credit denial and notice of credit terms going to be sufficient?

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#278551 - 11/22/04 08:23 PM Re: Negative Pricing Disclosure
Wore Out Offline
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Kentucky
If you are referring to the notice required under section 311...there is not a model out yet as we are awaiting the final rules.
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#278552 - 11/22/04 08:44 PM Re: Negative Pricing Disclosure
Ted Dreyer Offline
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The regulations on the risk-based pricing notice required by Section 311 are required to cover at least the following:

"‘‘(i) the form, content, time, and manner of delivery of any notice under this subsection;
‘‘(ii) clarification of the meaning of terms used in this subsection, including what credit terms are material, and when credit terms are materially less favorable;
‘‘(iii) exceptions to the notice requirement under this subsection for classes of persons or transactions regarding which the agencies determine that notice would not significantly benefit consumers;
‘‘(iv) a model notice that may be used to comply with this subsection; and
‘‘(v) the timing of the notice required under paragraph (1), including the circumstances under which the notice must be provided after the terms offered to the consumer were set based on information from a consumer report.

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#278553 - 11/23/04 05:54 PM Re: Negative Pricing Disclosure
Comply Offline
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Posts: 291
Is the compliance date for this notice to be December 1, 2004 or has that actually been finalized yet??

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#278554 - 11/23/04 05:58 PM Re: Negative Pricing Disclosure
Anonymous
Unregistered

How about 609 G A & B, section 212..Banks must give consumers their credit scores????

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#278555 - 11/23/04 07:39 PM Re: Negative Pricing Disclosure
Ted Dreyer Offline
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Ted Dreyer
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Posts: 2,245
Quote:

Is the compliance date for this notice to be December 1, 2004 or has that actually been finalized yet??




I'm sure they will include a compliance date in the regulations.

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#278556 - 11/26/04 04:18 PM Re: Negative Pricing Disclosure
Will Offline
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Joined: Dec 2002
Posts: 48
Does anyone out there have a notice they are using for the Risk-based Pricing Notice? I'm assuming we are supposed to be using this by December 1, if applicable. I would like to see what others have put together to comply with this.

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#278557 - 11/26/04 04:25 PM Re: Negative Pricing Disclosure
someone else Offline
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back to my roots
The risk-based pricing portion of the FACT Act has not yet been written therefore it doesn't have to be complied with on December 1.
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#278558 - 11/29/04 09:32 PM Re: Negative Pricing Disclosure
Anonymous
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Please post the required model disclosure when it is finalized.

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#278559 - 12/09/04 07:13 PM Re: Negative Pricing Disclosure
Beagles22 Offline
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State of confusion
This still hasn't been finalized right? So if we are offering someone credit at a higher rate than others because of low credit and questionable collateral I don't have to give a notice as of today? Just want to be sure before I go talk to the pres.
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#278560 - 12/09/04 07:18 PM Re: Negative Pricing Disclosure
HRH Okie Banker Offline
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Oklahoma
Does anyone else think that the risk based pricing will be one of the harder things about this Act?
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#278561 - 12/09/04 07:27 PM Re: Negative Pricing Disclosure
beaconpaul Offline
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Posts: 218
Minnesota
No, I actually think it will be easier. The trigger should be when you deviate from the rate sheet or you gear a rate towards different credit scores. It just has to be based on credit score. We have already built a disclosure to disclose the score, we can use that as a sample/model and construct a new disclosure. What else could this disclosure need to have in it besides some model language. Look at what the FACTA is trying to do, legislate credit education. If you keep that in mind it makes it a little easier to get your arms around.
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#278562 - 12/09/04 07:27 PM Re: Negative Pricing Disclosure
Ted Dreyer Offline
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Quote:

Does anyone else think that the risk based pricing will be one of the harder things about this Act?




The regulators do. Representatives from both the Federal reserve and FTC have said that this will probably be one of the last FACT Act regulations to be issued.

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#278563 - 12/09/04 08:29 PM Re: Negative Pricing Disclosure
Wore Out Offline
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Kentucky
Quote:

This still hasn't been finalized right? So if we are offering someone credit at a higher rate than others because of low credit and questionable collateral I don't have to give a notice as of today? Just want to be sure before I go talk to the pres.





You are correct Beagles...no finalization as of yet. You might take a look at this ABA letter that addresses 311 and a few other sections.
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#278564 - 12/09/04 08:31 PM Re: Negative Pricing Disclosure
Beagles22 Offline
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Posts: 3,626
State of confusion
Thanks Qtip. That is what I thought but just wanted to be SURE before processing a new loan for an important customer!
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Going to church doesn't make you a christian any more that standing in your garage makes you a car.

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#278565 - 12/09/04 08:33 PM Re: Negative Pricing Disclosure
Wore Out Offline
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Wore Out
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Posts: 543
Kentucky
Always a pleasure!!!
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Not even close to being legal advice....I have a bridge for sale too!

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