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Wolters Kluwer Financial Services Helps Dealers and Lenders Comply with Risk-Based Pricing Rule

January 20, 2011
3 min to read


BATON ROUGE – Wolters Kluwer Financial Services is offering dealers, lenders and F&I service providers a number of solutions to help them comply with the new federal risk-based pricing rule. As of Jan. 1, 2011, auto, marine and RV dealers, lenders and third-party service providers must notify consumers when they receive materially less favorable credit terms than others based on consumer report information.


The Federal Reserve Board and Federal Trade Commission issued the risk-based pricing rule to complement the existing adverse action notice provisions of the Fair Credit Reporting Act, which requires creditors to notify consumers only if they have been denied credit based on information in their credit report. Under the new rule, dealers, lenders and service providers must provide consumers who will receive less favorable credit terms a risk-based pricing notice before they sign a credit agreement.

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The exception to the risk-based pricing rule allows dealers and lenders to provide a credit score disclosure notice to all customers who apply for credit. The exception notice must include the consumer’s credit score, the date it was created, its source, and information about the range of scores and how lenders use them.


Wolters Kluwer Financial Services has several offerings and products designed to assist dealers, lenders and third-party F&I service providers with implementation of the rule, including:

  • AppOne - Wolters Kluwer Financial Services provides exception credit score disclosure forms free of charge to dealers, lenders and third party F&I service providers using its AppOne platform, which automates indirect lending, credit approval and compliance processes for independent auto, RV, marine and powersports dealers and the lenders they work with. When the dealer accesses and retrieves credit reports via AppOne, the system will automatically enter information into the form about credit scores, ranges and distribution. AppOne will also support custom versions of the credit score disclosure notice furnished by the lender.

  • Risk-based Pricing Toolkit – The new toolkit features a Pricing Disclosures Guide for Dealers. The guide gives detailed information about when a risk-based pricing notice is required, and how and when the risk-based pricing notice must be provided. It also includes information about the exception credit score disclosure and conditions for using alternative forms. The toolkit, which is available to dealers and lenders, also provides samples of the exception disclosure and samples of the required disclosure when no score is returned by a credit reporting company. The toolkit features best practices and tips for reducing the risk of non-compliance with the risk-based pricing rule.

  • Risk-based Pricing Notice Forms – These documents are available in print or electronic format to lenders and third-party service providers.

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“Our compliance solutions provide dealers, lenders and service providers with resources to help them quickly and easily meet the requirements of the new rule,” said Lee Domingue, CEO of Indirect Lending at Wolters Kluwer Financial Services. “These latest offerings showcase Wolters Kluwer Financial Services’ commitment to helping our indirect lending customers improve their compliance programs and increase their efficiency.”

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