FARMINGTON HILLS, Mich. — RouteOne is offering dealers a complimentary Risk-Based Pricing Notice tool to assist in compliance with the Risk-Based Pricing Rule issued jointly by the Federal Reserve System and the Federal Trade Commission.
The Risk-Based Pricing Rule generally requires a creditor (in most cases this term includes dealers) to provide a risk-based pricing notice to a consumer when the creditor uses a consumer report to grant or extend credit to the consumer on material terms (APR) that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that creditor (dealer) in connection with credit that is primarily for personal, household or family purposes. The Risk-Based Pricing Rule takes effect Jan. 1, 2011.
RouteOne will exercise the credit score disclosure exception to the risk-based pricing notice requirement, which provides the dealer the ability to print a credit score disclosure notice for all of the dealers’ consumers that request credit from the dealer.
“We are pleased to offer our dealers a solution that is not only complimentary to them, but also requires very little additional effort on their part when processing a deal,” said Mike Jurecki, RouteOne CEO. “Using our solution, dealers can quickly and easily process a risk-based pricing notice for every customer and stay in full compliance at no cost.”