Fair Credit Reporting
Risk-Based Pricing Notices
Kroll Factual Data offers a service that automatically generates print-ready Risk-Based Pricing Notice(s) with each credit report.
Select the appropriate version according to your type of business and policy for Risk-Based Pricing Notices:
- H-1: Risk-Based Pricing Notice
- H-2: Account Review Risk-Based Pricing Notice
- H-3: Credit Score Disclosure Exception for Credit Secured by One to Four Units of Residential Real Property
- H-4: Credit Score Disclosure Exception for Loans Not Secured by Residential Real Property
- H-5: Credit Score Disclosure Exception for Loans Where Credit Score is Not Available
- H-6: Credit Reports and the Price you Pay for Credit (including Credit Score Information).
- H-7: Credit Reports and the Pricing you Pay for Your Account (including Credit Score Information).
Letters automatically populate with information specific to the type of notice and transaction. For transactions with more than one applicant, multiple applicant-specific letters are generated, as required by the regulation.
Delivery options
If you use the Kroll Factual Data system, the pre-formatted notice is accessed directly from the credit report.
If you access Kroll Factual Data services through a system integration, you can select from up to three options for printing notices, depending on the system:
- Pre-formatted notice appended to the bottom of the credit report, available with all systems
- Inclusion of customer score rank, score model percentile data and the specific disclosure letter for the given transaction in PDF format
- Please contact Kroll Factual Data for details on completing an integration to enable this option.
- Hypertext Markup Language (HTML) or Portable Document Format (PDF) file
If you want to avoid the extra burden of printing and mailing notices yourself, you can take advantage of our fulfillment service, for an additional charge.
Streamlined regulatory compliance
- Save time.
- Reduce burdens on your staff.
- Simplify compliance.
- Receive monthly reports to support compliance reviews through the mail fulfillment service.
To set up your account based on your risk-based pricing policy, please contact Kroll Factual Data Account Services at 800-929-3400 ext. 444 or sales@krollfactualdata.com.
Frequently asked questions
- What do I need to do to access or use the new notices?
If you are using Kroll Factual Data’s service website, the letter wizard is available from the left frame of credit reports. If you are using a third-party platform, the letters can be appended to the credit report. Please contact Kroll Factual Data Account Services at 1-800-929-3400, option 1, ext 444 to set up this feature.
- Which letters will are available?
All letters are available (H-1, H-2, H-3, H-4, H-5, H-6, H-7 plus FACTA)
- What will happen if no scores are generated for the consumer (thin file)?
The H-5, a letter for loans where a credit score is not available, will be provided.
- Will I be able to access letters through a loan origination or automated underwriting system?
If you access Kroll Factual Data services through a system integration, you can select from three options for printing notices, depending on the system:
- A pre-formatted notice appended to the bottom of the credit report, available with all systems.
- Inclusion of consumer score rank, score model percentile data as well as the specific disclosure letter for the given transaction in PDF format. (To take advantage of this option your software solution provider will need to work with KFD on extending their existing interface support.)
- Hypertext Markup Language (HTML) or Portable Document Format (PDF) file.
- Will the histogram (graph) be available for H-3 and H-4?
Kroll Factual Data will provide histograms for the most commonly used FICO score models.
- Experian/Fair Isaac Risk Model V2 => Package “Fair Isaac”
- Trans Union FICO Classic ’98 (Empirica)
- Trans Union FICO Classic ’04
- Equifax Beacon 5
- If there is more than one score for the consumer, which score(s) will be displayed on the H-3/H-4 letter?
There are two options for credit reports with more than one bureau/score:
- Show all scores – all scores and associated histograms/narratives will be displayed on the letter, depending on how the account is set up.
- Show middle score – the middle score will be displayed for tri-merge reports; and the low score will be displayed for two-bureau reports. The associated histogram/narrative will also be shown, depending on how the account is set up.
- Will the histogram (graph) and narrative be included on H-3/H-4 letters?
The histogram, narrative, or both can be provided on the H-3/H-4 – you need to contact Account Services to set up this feature. This can also be controlled on a case-by-case basis using the letter wizard available in the Kroll Factual Data services site (https://widow1.factualdata.com/j/main?BWLOGIN(LOGIN()))
- Will Kroll Factual Data provide a printing and mailing service for letters?
Yes, printing and mailing services are available at an additional cost. Please contact Account Services if you are interested in setting up this service. Management reports will also be available and will detail fulfillment (which reports had letters, what letter(s) were sent, when the letter(s) were printed, etc.).
- What format are the letter(s)?
Letters are available in html or PDF format; both formats can be printed.
- If there are two borrowers, will each borrower receive a letter?
Yes, for the new risk-based pricing notices and disclosure exceptions, each borrower will receive a separate letter.