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 section 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 section 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 section
1022.73 or section 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.
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Model form for risk-based
pricing notice.
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Model form for account
review risk-based pricing notice.
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Model form for credit score
disclosure exception for credit secured by one to four units of residential
real property.
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Model form for credit score
disclosure exception for loans not secured by residential real property.
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Model form for credit score
disclosure exception for loans where credit score is not available.
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Model form for risk-based
pricing notice with credit score information.
-
Model form for account review
risk-based pricing notice with credit score information.
