RISK-BASED PRICING NOTICE.

SEC. 311. RISK-BASED PRICING NOTICE.(a) Duties of Users.—Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m), as amended by this Act, is amended by adding at the end the following:“(h) Duties of Users in Certain Credit Transactions.—“(1) In general.—Subject to rules prescribed as provided in paragraph (6), if any person uses a consumer report in connection with an application for, or a grant, extension, or other provision of, credit on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers from or through that person, based in whole or in part on a consumer report, the person shall provide an oral, written, or electronic notice to the consumer in the form and manner required by regulations prescribed in accordance with this subsection.“(2) Timing.—The notice required under paragraph (1) may be provided at the time of an application for, or a grant, extension, or other provision of, credit or the time of communication of an approval of an application for, or grant, extension, or other provision of, credit, except as provided in the regulations prescribed under paragraph (6). “(3) Exceptions.—No notice shall be required from a person under this subsection if—“(A) the consumer applied for specific material terms and was granted those terms, unless those terms were initially specified by the person after the transaction was initiated by the consumer and after the person obtained a consumer report; or“(B) the person has provided or will provide a notice to the consumer under subsection (a) in connection with the transaction.“(4) Other notice not sufficient.—A person that is required to provide a notice under subsection (a) cannot meet that requirement by providing a notice under this subsection.“(5) Content and delivery of notice.—A notice under this subsection shall, at a minimum—“(A) include a statement informing the consumer that the terms offered to the consumer are set based on information from a consumer report;“(B) identify the consumer reporting agency furnishing the report;“(C) include a statement informing the consumer that the consumer may obtain a copy of a consumer report from that consumer reporting agency without charge; and“(D) include the contact information specified by that consumer reporting agency for obtaining such consumer reports (including a toll-free telephone number established by the agency in the case of a consumer reporting agency described in section 603(p)).117 STAT. 1989“(6) Rulemaking.—“(A) Rules required.—The Commission and the Board shall jointly prescribe rules. “(B) Content.—Rules required by subparagraph (A) shall address, but are not limited to—“(i) the form, content, time, and manner of delivery of any notice under this subsection;“(ii) clarification of the meaning of terms used in this subsection, including what credit terms are material, and when credit terms are materially less favorable; “(iii) exceptions to the notice requirement under this subsection for classes of persons or transactions regarding which the agencies determine that notice would not significantly benefit consumers; “(iv) a model notice that may be used to comply with this subsection; and “(v) the timing of the notice required under paragraph (1), including the circumstances under which the notice must be provided after the terms offered to the consumer were set based on information from a consumer report.“(7) Compliance.—A person shall not be liable for failure to perform the duties required by this section if, at the time of the failure, the person maintained reasonable policies and procedures to comply with this section. “(8) Enforcement.—“(A) No civil actions.—Sections 616 and 617 shall not apply to any failure by any person to comply with this section. “(B) Administrative enforcement.—This section shall be enforced exclusively under section 621 by the Federal agencies and officials identified in that section.”. (b) Relation to State Laws.—Section 625(b)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as so designated by section 214 of this Act, is amended by adding at the end the following:“(I) section 615(h), relating to the duties of users of consumer reports to provide notice with respect to terms in certain credit transactions;”.