When should the Risk-based Pricing Notice be provided to a consumer applying for credit?

The Risk-based Pricing Notice should be provided to a consumer applying for credit after the credit application has been received but before the transaction is complete. This timing is crucial because the notice serves to inform the consumer about the pricing terms of the credit offer based on their creditworthiness. It is intended to provide transparency regarding any variations in terms that might arise from the consumer's credit profile in comparison to other applicants.

By issuing the notice after receiving the application but before finalizing the transaction, the consumer has the opportunity to understand how their credit information influenced the terms being offered. This adherence ensures compliance with regulations designed to promote fairness and inform consumers about the impact of their credit history on credit pricing prior to final acceptance or rejection of the credit application.