Source: Reuters

Lenders would be required to tell consumers when they are being offered less favorable terms based on poorer credit scores under new rules proposed on Thursday by the Federal Reserve and the Federal Trade Commission.

The rules would require a “risk-based pricing” notice to consumers when they receive more expensive credit terms than those offered to individuals with better credit histories.

“Under these rules, a risk-based pricing notice would generally be provided to the consumer after terms of the credit have been set, but before the consumer becomes contractually obligated on the credit transaction,” the Fed and the FTC said in a statement.

Read Full Article: Fed, FTC propose new rules on poor-credit notices