Appendix H to Part 1022 - Model Forms for Risk-Based Pricing and Credit Score Disclosure Exception Notices
12:8.0.2.1.18.15.1.1.41 : Appendix H
Appendix H to Part 1022 - Model Forms for Risk-Based Pricing and
Credit Score Disclosure Exception Notices
1. This appendix contains four model forms for risk-based
pricing notices and three model forms for use in connection with
the credit score disclosure exceptions. Each of the model forms is
designated for use in a particular set of circumstances as
indicated by the title of that model form.
2. Model form H-1 is for use in complying with the general
risk-based pricing notice requirements in Sec. 1022.72 if a credit
score is not used in setting the material terms of credit. Model
form H-2 is for risk-based pricing notices given in connection with
account review if a credit score is not used in increasing the
annual percentage rate. Model form H-3 is for use in connection
with the credit score disclosure exception for loans secured by
residential real property. Model form H-4 is for use in connection
with the credit score disclosure exception for loans that are not
secured by residential real property. Model form H-5 is for use in
connection with the credit score disclosure exception when no
credit score is available for a consumer. Model form H-6 is for use
in complying with the general risk-based pricing notice
requirements in Sec. 1022.72 if a credit score is used in setting
the material terms of credit. Model form H-7 is for risk-based
pricing notices given in connection with account review if a credit
score is used in increasing the annual percentage rate. All forms
contained in this appendix are models; their use is optional.
3. A person may change the forms by rearranging the format or by
making technical modifications to the language of the forms, in
each case without modifying the substance of the disclosures. Any
such rearrangement or modification of the language of the model
forms may not be so extensive as to materially affect the
substance, clarity, comprehensibility, or meaningful sequence of
the forms. Persons making revisions with that effect will lose the
benefit of the safe harbor for appropriate use of appendix H model
forms. A person is not required to conduct consumer testing when
rearranging the format of the model forms.
a. Acceptable changes include, for example:
i. Corrections or updates to telephone numbers, mailing
addresses, or Web site addresses that may change over time.
ii. The addition of graphics or icons, such as the person's
corporate logo.
iii. Alteration of the shading or color contained in the model
forms.
iv. Use of a different form of graphical presentation to depict
the distribution of credit scores.
v. Substitution of the words “credit” and “creditor” or
“finance” and “finance company” for the terms “loan” and
“lender.”
vi. Including pre-printed lists of the sources of consumer
reports or consumer reporting agencies in a “check-the-box”
format.
vii. Including the name of the consumer, transaction
identification numbers, a date, and other information that will
assist in identifying the transaction to which the form
pertains.
viii. Including the name of an agent, such as an auto dealer or
other party, when providing the “Name of the Entity Providing the
Notice.”
ix. Until January 1, 2013, substituting “For more information
about credit reports and your rights under Federal law, visit the
Federal Reserve Board's Web site at www.federalreserve.gov,
or the Federal Trade Commission's Web site at www.ftc.gov.”
for “For more information about credit reports and your rights
under Federal law, visit the Consumer Financial Protection Bureau's
Web site at www.consumerfinance.gov/learnmore.”
b. Unacceptable changes include, for example:
i. Providing model forms on register receipts or interspersed
with other disclosures.
ii. Eliminating empty lines and extra spaces between sentences
within the same section.
4. If a person uses an appropriate appendix H model form, or
modifies a form in accordance with the above instructions, that
person shall be deemed to be acting in compliance with the
provisions of § 1022.73 or § 1022.74, as applicable, of this part.
It is intended that appropriate use of Model Form H-3 also will
comply with the disclosure that may be required under section
609(g) of the FCRA. Optional language in model forms H-6 and H-7
may be used to direct the consumer to the entity (which may be a
consumer reporting agency or the creditor itself, for a proprietary
score that meets the definition of a credit score) that provided
the credit score for any questions about the credit score, along
with the entity's contact information. Creditors may use or not use
the additional language without losing the safe harbor, since the
language is optional.
H-1 Model form for risk-based pricing notice.
H-2 Model form for account review risk-based pricing notice.
H-3 Model form for credit score disclosure exception for credit
secured by one to four units of residential real property.
H-4 Model form for credit score disclosure exception for loans
not secured by residential real property.
H-5 Model form for credit score disclosure exception for loans
where credit score is not available.
H-6 Model form for risk-based pricing notice with credit score
information.
H-7 Model form for account review risk-based pricing notice with
credit score information.
