For purposes of this subpart,
the following rules of construction apply:
(a) One notice per credit extension. A consumer
is entitled to no more than one risk-based pricing notice under section
1022.72(a) or (c), or one notice under section 1022.74(d), (e), or
(f), for each grant, extension, or other provision of credit. Notwithstanding
the foregoing, even if a consumer has previously received a risk-based
pricing notice in connection with a grant, extension, or other provision
of credit, another risk-based pricing notice is required if the conditions
set forth in section 1022.72(d) have been met.
(b) Multi-party transactions.
(1) Initial creditor. The person to whom a credit obligation is
initially payable must provide the risk-based pricing notice described
in section 1022.72(a) or (c), or satisfy the requirements for and
provide the notice required under one of the exceptions in section
1022.74(d), (e), or (f), even if that person immediately assigns the
credit agreement to a third party and is not the source of funding
for the credit.
(2) Purchasers or assignees. A purchaser or
assignee of a credit contract with a consumer is not subject to the
requirements of this subpart and is not required to provide the risk-based
pricing notice described in section 1022.72(a) or (c), or satisfy
the requirements for and provide the notice required under one of
the exceptions in section 1022.74(d), (e), or (f).
(3) Example. A consumer obtains credit to finance the purchase of an automobile.
If a bank or finance company is the person to whom the loan obligation
is initially payable, the bank or finance company must provide the
risk-based pricing notice to the consumer (or satisfy the requirements
for and provide the notice required under one of the exceptions noted
above) based on the terms offered by that bank or finance company
only. The auto dealer has no duty to provide a risk-based pricing
notice to the consumer. However, the bank or finance company may comply
with this rule if the auto dealer has agreed to provide notices to
consumers before consummation pursuant to an arrangement with the
bank or finance company, as permitted under section 1022.73(c).
(c) Multiple
consumers.
(1) Risk-based
pricing notices. In a transaction involving two or more consumers
who are granted, extended, or otherwise provided credit, a person
must provide a notice to each consumer to satisfy the requirements
of section 1022.72(a) or (c). Whether the consumers have the same
address or not, the person must provide a separate notice to each
consumer if a notice includes a credit score(s). Each separate notice
that includes a credit score(s) must contain only the credit score(s)
of the consumer to whom the notice is provided, and not the credit
score(s) of the other consumer. If the consumers have the same address,
and the notice does not include a credit score(s), a person may satisfy
the requirements by providing a single notice addressed to both consumers.
(2) Credit score disclosure notices. In a transaction
involving two or more consumers who are granted, extended, or otherwise
provided credit, a person must provide a separate notice to each consumer
to satisfy the exceptions in section 1022.74(d), (e), or (f) Whether
the consumers have the same address or not, the person must provide a separate
notice to each consumer. Each separate notice must contain only the
credit score(s) of the consumer to whom the notice is provided, and
not the credit score(s) of the other consumer.
(3) Examples.
(i) Two consumers jointly apply for
credit with a creditor. The creditor obtains credit scores on both
consumers. Based in part on the credit scores, the creditor grants
credit to the consumers on material terms that are materially less
favorable than the most favorable terms available to other consumers
from the creditor. The creditor provides risk-based pricing notices
to satisfy its obligations under this subpart. The creditor must provide
a separate risk-based pricing notice to each consumer whether the
consumers have the same address or not. Each risk-based pricing notice
must contain only the credit score(s) of the consumer to whom the
notice is provided.
(ii) Two consumers jointly apply for credit with a creditor. The
two consumers reside at the same address. The creditor obtains credit
scores on each of the two consumer applicants. The creditor grants
credit to the consumers. The creditor provides credit score disclosure
notices to satisfy its obligations under this subpart. Even though
the two consumers reside at the same address, the creditor must provide
a separate credit score disclosure notice to each of the consumers.
Each notice must contain only the credit score of the consumer to
whom the notice is provided.
