Lenders will be required to notify borrowers when their loans are made on terms that are less favorable than those offered other borrowers under rules completed Tuesday by the Federal Reserve Board and the Federal Trade Commission.
Borrowers who get this "risk-based pricing" notice from their lenders will be entitled to a free credit check under the new rules. Currently, borrowers must pay to check their credit reports.
The new rules are to take effect Jan. 1, 2011; they enforce provisions of the Fair and Accurate Credit Transactions Act of 2003.
