(a) Coverage—
(1) In general. This subpart applies to any person that both—
(i) Uses
a consumer report in connection with an application for, or a grant,
extension, or other provision of, credit to a consumer that is primarily
for personal, family, or household purposes; and
(ii) Based in whole or in part on the
consumer report, grants, extends, or otherwise provides credit to
the consumer on material terms that are materially less favorable
than the most favorable material terms available to a substantial
proportion of consumers from or through that person.
(2) Business credit excluded. This subpart
does not apply to an application for, or a grant, extension, or other
provision of, credit to a consumer or to any other applicant primarily
for a business purpose.
(b) Relation to Federal Trade Commission rules. These rules are substantively identical to the Federal Trade Commission’s
(Commission’s) risk-based pricing rules in 16 CFR 640.
Both rules apply to the covered person described in paragraph (a)
of this section. Compliance with either the Board’s rules or the Commission’s
rules satisfies the requirements of the statute (15 U.S.C. 1681m(h)).
(c) Enforcement. The
provisions of this subpart will be enforced in accordance with the
enforcement authority set forth in sections 621(a) and (b) of the
FCRA.
