source:
  type: regulation
  id: reg-v-1022.74
  authority: 12 CFR §1022.74 — Exceptions (Regulation V)
  description: 12 CFR §1022.74 — Exceptions.
  coverage_tier: operative
obligations:
- id: reg-v-1022.74-full
  canonical_id: reg-v-1022.74-full
  section: 12 CFR §1022.74 — Exceptions
  type: do
  tags:
  - regulator-direct
  - fcra
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 12 CFR §1022.74 — Exceptions (Regulation V)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1022.74
    snapshot_id: 79649299d9e9eea0
    fetched_at: '2026-05-22T18:52:54Z'
    content_hash: sha256:fb24da14daff4ec722eeb70c11a8fb2c694cd85297740535c9e2c641f1fd0fd5
    paragraph_quote: '§ 1022.74 Exceptions. (a) Application for specific terms —(1)
      In general. A person is not required to provide a risk-based pricing notice
      to the consumer under § 1022.72(a) or (c) if the consumer applies for specific
      material terms and is granted those terms, unless those terms were specified
      by the person using a consumer report after the consumer applied for or requested
      credit and after the person obtained the consumer report. For purposes of this
      section, “specific material terms” means a single material term, or set of material
      terms , such as an annual percentage rate of 10 percent, and not a range of
      alternatives, such as an annual percentage rate that may be 8, 10, or 12 percent,
      or between 8 and 12 percent. (2) Example. A consumer receives a firm offer of
      credit from a credit card issuer . The terms of the firm offer are based in
      whole or in part on information from a consumer report that the credit card
      issuer obtained under the FCRA''s firm offer of credit provisions. The solicitation
      offers the consumer a credit card with a single purchase annual percentage rate
      of 12 percent. The consumer applies for and receives a credit card with an annual
      percentage rate of 12 percent. Other customers with the same credit card have
      a purchase annual percentage rate of 10 percent. The exception applies because
      the consumer applied for specific material terms and was granted those terms.
      Although the credit card issuer specified the annual percentage rate in the
      firm offer of credit based in whole or in part on a consumer report, the credit
      card issuer specified that material term before, not after, the consumer applied
      for or requested credit. (b) Adverse action notice. A person is not required
      to provide a risk-based pricing notice to the consumer under § 1022.72(a) ,
      (c), or (d) if the person provides an adverse action notice to the consumer
      under section 615(a) of the FCRA. (c) Prescreened solicitations —(1) In general.
      A person is not required to provide a risk-based pricing notice to the consumer
      under § 1022.72(a) or (c) if the person: (i) Obtains a consumer report that
      is a prescreened list as described in section 604(c)(2) of the FCRA; and (ii)
      Uses the consumer report for the purpose of making a firm offer of credit to
      the consumer . (2) More favorable material terms. This exception applies to
      any firm offer of credit offered by a person to a consumer , even if the person
      makes other firm offers of credit to other consumers on more favorable material
      terms . (3) Example. A credit card issuer obtains two prescreened lists from
      a consumer reporting agency. One list includes consumers with high credit scores.
      The other list includes consumers with low credit scores. The issuer mails a
      firm offer of credit to the high credit score consumers with a single purchase
      annual percentage rate of 10 percent. The issuer also mails a firm offer of
      credit to the low credit score consumers with a single purchase annual percentage
      rate of 14 percent. The credit card issuer is not required to provide a risk-based
      pricing notice to the low credit score consumers who receive the 14 percent
      offer because use of a consumer report to make a firm offer of credit does not
      trigger the risk-based pricing notice requirement. (d) Loans secured by residential
      real property—credit score disclosure —(1) In general. A person is not required
      to provide a risk-based pricing notice to a consumer under § 1022.72(a) or (c)
      if: (i) The consumer requests from the person an extension of credit that is
      or will be secured by one to four units of residential real property; and (ii)
      The person provides to each consumer described in paragraph (d)(1)(i) of this
      section a notice that contains the following: (A) A statement that a consumer
      report (or credit report) is a record of the consumer ''s credit history and
      includes information about whether the consumer pays his or her obligations
      on time and how much the consumer owes to creditors; (B) A statement that a
      credit score is a number that takes into account information in a consumer report
      and that a credit score can change over time to reflect changes in the consumer
      ''s credit history; (C) A statement that the consumer ''s credit score can affect
      whether the consumer can obtain credit and what the cost of that credit will
      be; (D) The information required to be disclosed to the consumer pursuant to
      section 609(g) of the FCRA; (E) The distribution of credit scores among consumers
      who are scored under the same scoring model that is used to generate the consumer
      ''s credit score using the same scale as that of the credit score that is provided
      to the consumer , presented in the form of a bar graph containing a minimum
      of six bars that illustrates the percentage of consumers with credit scores
      within the range of scores reflected in each bar or by other clear and readily
      understandable graphical means, or a clear and readily understandable statement
      informing the consumer how his or her credit score compares to the scores of
      other consumers. Use of a graph or statement obtained from the person providing
      the credit score that meets the requirements of this paragraph (d)(1)(ii)(E)
      is deemed to comply with this requirement; (F) A statement that the consumer
      is encouraged to verify the accuracy of the information contained in the consumer
      report and has the right to dispute any inaccurate information in the report;
      (G) A statement that Federal law gives the consumer the right to obtain copies
      of his or her consumer reports directly from the consumer reporting agencies,
      including a free report from each of the nationwide consumer reporting agencies
      once during any 12-month period; (H) Contact information for the centralized
      source from which consumers may obtain their free annual consumer reports; and
      (I) A statement directing consumers to the Web site of the Bureau to obtain
      more information about consumer reports. (2) Form of the notice. The notice
      described in paragraph (d)(1)(ii) of this section must be: (i) Clear and conspicuous
      ; (ii) Provided on or with the notice required by section 609(g) of the FCRA;
      (iii) Segregated from other information provided to the consumer , except for
      the notice required by section 609(g) of the FCRA; and (iv) Provided to the
      consumer in writing and in a form that the consumer may keep. (3) Timing. The
      notice described in paragraph (d)(1)(ii) of this section must be provided to
      the consumer at the time the disclosure required by section 609(g) of the FCRA
      is provided to the consumer , but in any event at or before consummation in
      the case of closed-end credit or before the first transaction is made under
      an open-end credit plan . (4) Multiple credit scores —(i) In general. When a
      person obtains two or more credit scores from consumer reporting agencies and
      uses one of those credit scores in setting the material terms of credit granted,
      extended, or otherwise provided to a consumer , for example, by using the low,
      middle, high, or most recent score, the notice described in paragraph (d)(1)(ii)
      of this section must include that credit score and the other information required
      by that paragraph. When a person obtains two or more credit scores from consumer
      reporting agencies and uses multiple credit scores in setting the material terms
      of credit granted, extended, or otherwise provided to a consumer , for example,
      by computing the average of all the credit scores obtained, the notice described
      in paragraph (d)(1)(ii) of this section must include one of those credit scores
      and the other information required by that paragraph. The notice may, at the
      person ''s option, include more than one credit score, along with the additional
      information specified in paragraph (d)(1)(ii) of this section for each credit
      score disclosed. (ii) Examples. (A) A person that uses consumer reports to set
      the material terms of mortgage credit granted, extended, or provided to consumers
      regularly requests credit scores from several consumer reporting agencies and
      uses the low score when determining the material terms it will offer to the
      consumer . That person must disclose the low score in the notice described in
      paragraph (d)(1)(ii) of this section. (B) A person that uses consumer reports
      to set the material terms of mortgage credit granted, extended, or provided
      to consumers regularly requests credit scores from several consumer reporting
      agencies, each of which it uses in an underwriting program in order to determine
      the material terms it will offer to the consumer . That person may choose one
      of these scores to include in the notice described in paragraph (d)(1)(ii) of
      this section. (5) Model form. A model form of the notice described in paragraph
      (d)(1)(ii) of this section consolidated with the notice required by section
      609(g) of the FCRA is contained in appendix H-3 of this part. Appropriate use
      of Model Form H-3 is deemed to comply with the requirements of § 1022.74(d).
      Use of the model form is optional. (e) Other extensions of credit—credit score
      disclosure —(1) In general. A person is not required to provide a risk-based
      pricing notice to a consumer under § 1022.72(a) or (c) if: (i) The consumer
      requests from the person an extension of credit other than credit that is or
      will be secured by one to four units of residential real property; and (ii)
      The person provides to each consumer described in paragraph (e)(1)(i) of this
      section a notice that contains the following: (A) A statement that a consumer
      report (or credit report) is a record of the consumer ''s credit history and
      includes information about whether the consumer pays his or her obligations
      on time and how much the consumer owes to creditors; (B) A statement that a
      credit score is a number that takes into account information in a consumer report
      and that a credit score can change over time to reflect changes in the consumer
      ''s credit history; (C) A statement that the consumer ''s credit score can affect
      whether the consumer can obtain credit and what the cost of that credit will
      be; (D) The current credit score of the consumer or the most recent credit score
      of the consumer that was previously calculated by the consumer reporting agency
      for a purpose related to the extension of credit; (E) The range of possible
      credit scores under the model used to generate the credit score; (F) The distribution
      of credit scores among consumers who are scored under the same scoring model
      that is used to generate the consumer ''s credit score using the same scale
      as that of the credit score that is provided to the consumer , presented in
      the form of a bar graph containing a minimum of six bars that illustrates the
      percentage of consumers with credit scores within the range of scores reflected
      in each bar, or by other clear and readily understandable graphical means, or
      a clear and readily understandable statement informing the consumer how his
      or her credit score compares to the scores of other consumers. Use of a graph
      or statement obtained from the person providing the credit score that meets
      the requirements of this paragraph (e)(1)(ii)(F) is deemed to comply with this
      requirement; (G) The date on which the credit score was created; (H) The name
      of the consumer reporting agency or other person that provided the credit score;
      (I) A statement that the consumer is encouraged to verify the accuracy of the
      information contained in the consumer report and has the right to dispute any
      inaccurate information in the report; (J) A statement that Federal law gives
      the consumer the right to obtain copies of his or her consumer reports directly
      from the consumer reporting agencies, including a free report from each of the
      nationwide consumer reporting agencies once during any 12-month period; (K)
      Contact information for the centralized source from which consumers may obtain
      their free annual consumer reports; and (L) A statement directing consumers
      to the Web site of the Bureau to obtain more information about consumer reports.
      (2) Form of the notice. The notice described in paragraph (e)(1)(ii) of this
      section must be: (i) Clear and conspicuous ; (ii) Segregated from other information
      provided to the consumer ; and (iii) Provided to the consumer in writing and
      in a form that the consumer may keep. (3) Timing. The notice described in paragraph
      (e)(1)(ii) of this section must be provided to the consumer as soon as reasonably
      practicable after the credit score has been obtained, but in any event at or
      before consummation in the case of closed-end credit or before the first transaction
      is made under an open-end credit plan . (4) Multiple credit scores. (i) In general.
      When a person obtains two or more credit scores from consumer reporting agencies
      and uses one of those credit scores in setting the material terms of credit
      granted, extended, or otherwise provided to a consumer , for example, by using
      the low, middle, high, or most recent score, the notice described in paragraph
      (e)(1)(ii) of this section must include that credit score and the other information
      required by that paragraph. When a person obtains two or more credit scores
      from consumer reporting agencies and uses multiple credit scores in setting
      the material terms of credit granted, extended, or otherwise provided to a consumer
      , for example, by computing the average of all the credit scores obtained, the
      notice described in paragraph (e)(1)(ii) of this section must include one of
      those credit scores and the other information required by that paragraph. The
      notice may, at the person ''s option, include more than one credit score, along
      with the additional information specified in paragraph (e)(1)(ii) of this section
      for each credit score disclosed. (ii) Examples. The manner in which multiple
      credit scores are to be disclosed under this section are substantially identical
      to the manner set forth in the examples contained in paragraph (d)(4)(ii) of
      this section. (5) Model form. A model form of the notice described in paragraph
      (e)(1)(ii) of this section is contained in appendix H-4 of this part. Appropriate
      use of Model Form H-4 is deemed to comply with the requirements of § 1022.74(e).
      Use of the model form is optional. (f) Credit score not available —(1) In general.
      A person is not required to provide a risk-based pricing notice to a consumer
      under § 1022.72(a) or (c) if the person: (i) Regularly obtains credit scores
      from a consumer reporting agency and provides credit score disclosures to consumers
      in accordance with paragraphs (d) or (e) of this section, but a credit score
      is not available from the consumer reporting agency from which the person regularly
      obtains credit scores for a consumer to whom the person grants, extends, or
      provides credit; (ii) Does not obtain a credit score from another consumer reporting
      agency in connection with granting, extending, or providing credit to the consumer
      ; and (iii) Provides to the consumer a notice that contains the following: (A)
      A statement that a consumer report (or credit report) includes information about
      the consumer ''s credit history and the type of information included in that
      history; (B) A statement that a credit score is a number that takes into account
      information in a consumer report and that a credit score can change over time
      in response to changes in the consumer ''s credit history; (C) A statement that
      credit scores are important because consumers with higher credit scores generally
      obtain more favorable credit terms; (D) A statement that not having a credit
      score can affect whether the consumer can obtain credit and what the cost of
      that credit will be; (E) A statement that a credit score about the consumer
      was not available from a consumer reporting agency, which must be identified
      by name, generally due to insufficient information regarding the consumer ''s
      credit history; (F) A statement that the consumer is encouraged to verify the
      accuracy of the information contained in the consumer report and has the right
      to dispute any inaccurate information in the consumer report; (G) A statement
      that Federal law gives the consumer the right to obtain copies of his or her
      consumer reports directly from the consumer reporting agencies, including a
      free consumer report from each of the nationwide consumer reporting agencies
      once during any 12-month period; (H) The contact information for the centralized
      source from which consumers may obtain their free annual consumer reports; and
      (I) A statement directing consumers to the Web site of the Bureau to obtain
      more information about consumer reports. (2) Example. A person that uses consumer
      reports to set the material terms of non-mortgage credit granted, extended,
      or provided to consumers regularly requests credit scores from a particular
      consumer reporting agency and provides those credit scores and additional information
      to consumers to satisfy the requirements of paragraph (e) of this section. That
      consumer reporting agency provides to the person a consumer report on a particular
      consumer that contains one trade line, but does not provide the person with
      a credit score on that consumer . If the person does not obtain a credit score
      from another consumer reporting agency and, based in whole or in part on information
      in a consumer report, grants, extends, or provides credit to the consumer ,
      the person may provide the notice described in paragraph (f)(1)(iii) of this
      section. If, however, the person obtains a credit score from another consumer
      reporting agency, the person may not rely upon the exception in paragraph (f)
      of this section, but may satisfy the requirements of paragraph (e) of this section.
      (3) Form of the notice. The notice described in paragraph (f)(1)(iii) of this
      section must be: (i) Clear and conspicuous ; (ii) Segregated from other information
      provided to the consumer ; and (iii) Provided to the consumer in writing and
      in a form that the consumer may keep. (4) Timing. The notice described in paragraph
      (f)(1)(iii) of this section must be provided to the consumer as soon as reasonably
      practicable after the person has requested the credit score, but in any event
      not later than consummation of a transaction in the case of closed-end credit
      or when the first transaction is made under an open-end credit plan . (5) Model
      form. A model form of the notice described in paragraph (f)(1)(iii) of this
      section is contained in appendix H-5 of this part. Appropriate use of Model
      Form H-5 is deemed to comply with the requirements of § 1022.74(f). Use of the
      model form is optional.'
  judgment: false
