Anthony LaFaziaCEO, Atlantic Training · CEO at Atlantic Training | EdTech & Safety Compliance Leader

FCRA Compliance Made Simpler: How the Credit Score Disclosure Exception Works

3 Jul 2026 · 2 min

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2:17

In this segment, the presenter explains the Credit Score Disclosure Exception created by the FTC and CFPB to simplify compliance with the Fair Credit Reporting Act (FCRA). Instead of calculating which applicants receive materially less favorable treatment, lenders can opt to provide a credit‑score disclosure notice to every credit applicant. The presenter outlines the mandatory elements of the notice—actual score, score range, score creation date, key adverse factors, a statement that scores can change, and the name of the credit bureau. He emphasizes that the method is an all‑or‑nothing approach: the notice must be sent to all applicants, not a selective subset, making it a safer compliance route but requiring strict adherence to the universal distribution rule. The clip also contains a brief promotional read for Atlantic Training’s HR and soft‑skill courses hosted on the Wave platform.

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All right, lean in for this part because this is what most of you will see in the wild. The FTC and the CFPB. You know what I'm talking about, right? They realized that calculating materially less favorable for every single transaction is a pain. So they created the Credit Score Disclosure Exception. Basically, they said, look, instead of figuring out who's getting a bad deal, why don't you just give everyone their score? If you go this route, you provide a credit score disclosure notice to all consumers who apply for credit regardless of the rate.
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You don't have to do the math, you just give them the info. Now, this notice must include their actual credit score, the range of possible scores, the date the score was created, the key factors that adversely affected the score, a statement that scores can change over time, and the name of the credit bureau that provided the score. For most lenders, This is the preferred method. It's safer compliance-wise because you aren't risking a miscalculation. You're just handing over the data. But, and look, there's always a but, you have to make sure you send it to everyone. You can't pick and choose with the exception method. It's all or nothing.