New Credit Information|Guidelines Proposed

WASHINGTON (CN) - The Federal Trade Commission has proposed revisions to three key information documents that credit ratings agencies and credit providers must give to consumers.

The documents are a summary of consumer rights, a notice of responsibilities for people who furnish information to consumer reporting agencies, and a notice of responsibilities for people who obtain consumer reports from consumer reporting agencies.

One major change to the documents would require credit providers who use consumer credit reports to grant or deny credit to provide risk-based pricing notices if they extend credit to a particular consumer on less favorable terms than they offer to others. These pricing notices explain the basis of the decision and the circumstances under which the consumer might qualify for better terms.

The revised documents also would describe new processes by which a consumer may dispute information on the credit reports. Previously, consumers had to file a dispute with the credit reporting agency, but in July 2009, the FTC and other federal agencies issued the Furnisher Direct Dispute Rule, which allows consumers to dispute the accuracy of their consumer report directly with the furnisher of that information as well as with the credit reporting agency.

The FTC requests public comment on the proposed revisions. The documents were last revised in 2004 to reflect changes required by the Fair and Accurate Credit Transactions Act.

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