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Our consumer loan application has a “Notice of Less Favorable Terms” section on it that says the following: The terms upon which we have approved your credit application may be materially less favorable than most favorable terms available to a substantial proportion of consumers making similar application to us. The terms offered to you based in whole or in part on information obtained from the consumer-reporting agency listed below. You have the right under the Fair Credit Reporting Act to know the information contained in your credit file at the consumer-reporting agency. You also have a right to a free copy of your report from the reporting agency. If you request it no later than 60 days after you receive this notice. (This language is followed by a listing of TransUnion, Experian, and Equifax with a checkbox preceding each.)
We have always provided the Credit Score Disclosure Exception (Model Form H-3/H-4/H-5) so I’m confused as to why the above language is on the application. I am planning to have it removed, but just wanted to confirm that this is an appropriate action.
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