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Do the risk-based pricing (RBP) requirements contained in FCRA apply to consumer auto leases?

No. RBP applies only to credit, and a lease is not credit. Section 1022.71(h) of Regulation V provides that “credit” has the same meaning as Section 1681a(r)(5) of the Fair Credit Reporting Act. That act, in turn, provides that “credit” has the same meaning as in Section 702 of the Equal Credit Opportunity Act, which defines credit as a the “right granted by a creditor…to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment therefor.” The Federal Reserve Board, when it adopted the final rule implementing the risk-based pricing rule noted, “Consumer leases generally are not treated as ‘credit’ under the Equal Credit Opportunity Act…Thus, the rule [risk-based pricing rule] does not apply to consumer lease transactions.” (Emphasis added.)

See page 2727 of Fair Credit Reporting Risk-Based Pricing Regulations

(February 2020)

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