New rules from the Federal Reserve Board (FRB) and Federal Trade Commission (FTC) will soon require that consumers who are denied credit receive free credit scores. The new rules will also apply to consumers whose existing loan terms become less favorable as a result of their credit scores.
As a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, both the FRB and FTC issued the final rules to give consumers a better understanding of how their credit has affected their relationship with a lender or creditor.
Starting on July 21, banks and other institutions will be required to issue a free credit score to consumers if they use a score to:
- Set credit terms
- Deny credit
- Revoke credit
- Change existing terms
Credit scores are very often used by lenders who want to set or adjust loan terms. Si
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