COMPLIANCE REQUIREMENTS FOR A CREDIT SCORE MAILING LIST

The Federal Trade Commission (FTC) has very strict rules about marketing promotions that may qualify for usage of actual credit data. For compliance ALL of the following conditions must be met.

BEFORE submitting your mail pieces / telemarketing script to the DMDatabases Credit Review Department, please carefully review your mail piece/telemarketing script to make sure ALL conditions are met.

Firm Offer of Credit
The mail piece or telemarketing script is required to offer a minimum AND maximum amount to finance or a minimum interest rate. The minimum amount has to be a reasonable loan amount with which to purchase, refinance or debt consolidate (i.e. you must have at least $20,000 or a 1.5% interest rate)! The maximum amount has to be reasonable for the targeted consumer to be approved for. You have to set approval criteria that the consumer could reasonably be expected to meet!
NEED THE FAIR HOUSING VERBIAGE ON THE FRONT OF THE MAIL PIECE! NEED THE END USERS LICENSE NUMBER (AND STATE OF ISSUANCE).

Opt Out Short Notice
Short Notice has to be on the front page of the offer / mailer! Short Notice has to direct the reader to the Long Notice! Short Notice type size has to be larger than the size of the principal text on the same page! Short Notice type size has to be at least 12 pt.! Short Notice type has to be in a different style than the principal text on the same page (i.e., bold, italics, different color, etc.)! It has to be inside of a border in a format that distinguishes it from other text on the page!
Example:
You can choose to stop receiving “pre-screened” offers of credit from this and other companies by calling toll free 888-567-8688. See the PRESCREEN & OPT OUT NOTICE below for more information about prescreened offers.

Opt Out Long Notice
The type size can be no smaller than the type size of the principal text on the page! The type size has to be at least 10 pt. (recommended 12 pt. if on the reverse side)! It has to begin with the following heading in capital letters AND underlined: “PRESCREEN & OPT OUT NOTICE” (see example below)!
The type style has to be distinct from the type style of the principal text of the page (i.e. bold, italics, or different color)! It has to be set apart from other text on the page, such as indenting margins and a blank line above and below it! It must contain ONLY language regarding the Opt Out message and nothing else that could confuse the consumer! It MUST be in clear, concise, and simple terms that the average consumer will easily understand!
Example:
PRESCREEN & OPT-OUT NOTICE: This “prescreened” offer of credit is based on information in your credit report indicating that you meet certain criteria. This offer is not guaranteed if you do not meet our criteria including providing acceptable collateral. If you do not want to receive prescreened offers of credit from this or any other companies, call the consumer reporting agencies toll free, 1-888-567-8688 or write: Equifax Options, P.O. Box 740123 Atlanta, GA 30374, Experian Information Systems, Inc., P.O. Box 919, Allen, TX 75013, Trans Union LLC, P.O. Box 97328, Jackson, MS 39288.

The Long Notice cannot contain any information other than what you see here that might confuse the FCRA message. Any additional specific lending criteria that we now have in our disclaimer or any other terms and conditions such as debt to income ratios, etc. will also have to be met. This notice is for Opt¬Out compliance guidelines only and is to be used for a checklist ONLY!
*TERMS AND CONDITIONS: Information from your consumer credit report was used in connection with this offer and you received this offer because you satisfied certain criteria of credit worthiness used to screen persons for this offer. Credit may not be extended if, after you respond to this offer, you no longer meet the selection criteria, cannot provide verification of income of $2200 per month with one year of employment, we do not receive a satisfactory appraisal, title and LTV on your home and/or a current credit report shows adverse information. This offer is made under the assumption that you will qualify for a minimum of $100,000 up to $999,999.00 mortgage loan at rates from 1.0% to 11.99% depending on qualifications and that your debt-to-income ratio is appropriate and reasonable for this level of debt. We may also choose to cancel this offer if it is unable to verify information you have provided. You have the right to prohibit information contained in your credit file with any consumer reporting agency from being used in conjunction with any credit transaction that you do not initiate. The toll free number to opt out is 1-888-567-8688.

NEED THE FAIR HOUSING VERBIAGE ON THE FRONT MAIL PIECE AND/OR ON TELEMARKETING SCRIPT!
SAMPLE: (Mortgage Company Name) are Equal Housing Lenders. © 2006

NEED THE END USERS LICENSE NUMBER (AND STATE OF ISSUANCE) AND PHONE NUMBER
Visit the FTC website for more compliance information / guidelines.

NOT ABLE COMPLY WITH FTC REGULATIONS?
If you are not able to comply with FTC regulations, then we highly recommend the “Modeled Credit Database,” which has proven to be quite effective with other marketers who need some credit related qualifications.
Click Here for Modeled Credit Database