Due to recent regulations in the lending system, the Federal Reserve is issuing a new online publication to clear up consumer questions that may transpire from the changes.
Beginning on January 1, lenders will now be required to issue consumers a credit report when they are given less favorable terms on loans, insurance and credit cards than other applicants. Financial institutions can also opt to issue a credit score instead of a report.
The new document, "What You Need To Know: New Rules about Credit Decisions and Notices," is designed to help consumers navigate these notices by providing links to samples texts and frequently asked questions. The document also shares tips on how individuals can respond to a notice.
In addition, the online resource includes information on how consumers can dispute a credit report error. These errors can cost individuals thousands of dollars over the course of a loan, as they typically lead to higher interest rates and other penalties, the Federal Reserve said.
Consumers can also contact a credit repair company if they experience this problem, which can provide guidance and assistance with removing a credit report mistake.