WASHINGTON (CN) – If a consumer is denied credit, a job or housing based on a credit score, the one taking the adverse action would have to give the consumer certain details in writing, according to proposed Federal Reserve regulations implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The written notice would have to detail the time, date and company from which the rejecting party obtained the credit score.
The document also would have to give notice that the consumer is entitled to a free credit report, and that the consumer may challenge the veracity and details of any credit report used to make a negative decision.
In addition, the notice must detail the range of acceptable credit scores that would have resulted in a different decision, and guidance on what specific information on the consumer’s credit report resulted in an unsatisfactory score.
These provisions apply to notifications required by the Fair Credit Reporting Act and the Equal Credit Opportunity Act.
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