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
222.72(a) or (c), or one notice under section 222.74(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 222.72(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 222.72(a)
or (c), or satisfy the requirements for and provide the notice required
under one of the exceptions in section 222.74(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 222.72(a) or (c), or satisfy the requirements
for and provide the notice required under one of the exceptions in
section 222.74(d), (e), or (f).
(3) Examples.
(i) A consumer obtains credit to finance
the purchase of an automobile. If the auto dealer is the person to
whom the loan obligation is initially payable, such as where the auto
dealer is the original creditor under a retail installment sales contract,
the auto dealer 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), even if the auto dealer
immediately assigns the loan to a bank or finance company. The bank
or finance company, which is an assignee, has no duty to provide a
risk-based pricing notice to the consumer.
(ii) 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 222.73(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 222.72(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 222.74(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.
