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New rules would require notice about loan terms, while debt management still an option for improving a financial position
12/23/2009
Lenders are making every effort to reduce their risk as the country tries to recover from a recession, which leads many to be more careful when issuing credit.
As a result, many creditors may not offer the most favorable terms for people who do not have the best credit history. However, a recent rule change from the Federal Reserve Board and the Federal Trade Commission may help some people find out if they are getting tougher terms for loans because of their financial past.
Starting in 2011, lenders that use a credit report to establish more stringent terms for a loan will be required to give consumers a notice. People can then get a free copy of their credit report, which they can examine to check for accuracy.
"The final rules provide creditors with several methods for determining which consumers must receive risk-based pricing notices," a report from the Fed said.
However, some consumers may find that their financial past is still making their lives difficult, especially with high credit card debt. One option that may be open to them is debt management, which can aid a person pay off debt at a lower rate.
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