When is the Exception/Credit Score Disclosure/Risk Based Pricing Notice not required?

The situation in which the Exception/Credit Score Disclosure/Risk Based Pricing Notice is not required occurs when a credit report is not pulled. In this context, if a lender or creditor does not obtain a credit report for evaluating an applicant's creditworthiness, there is no basis for risk-based pricing, and therefore, the disclosure is not necessary.

The purpose of the notice is to inform applicants about differences in the cost of credit based on their credit scores or other information in their credit reports. If no credit report exists for that applicant at the time of assessment, then there are no credit-related data to report or disclose. Hence, the requirement for a notice tied to credit score risk does not apply in this specific context.

This understanding emphasizes the significance of credit reports in the risk assessment process and the regulatory obligations tied to disclosing relevant credit information to consumers when credit evaluations are made.