Tick, tick, tick... Consumers are counting down the minutes until 7/22/11...but what about consumers with a Good Credit Score?

Many consumers are counting down the days... 147 to be exact, until the FACS Act goes into effect.

Credit scores are critical for American consumers, especially in a struggling economy. Higher credit scores often mean lower interest payments for credit cards, automobiles and home mortgages. Consumers who have taken advantage of their one free credit report per year are often surprised to find out it does not include their actual credit score.

That will be rectified come July when the FACS Act (Fair Access to Credit Scores Act), sponsored by Sen. Mark Udall (D-Co.) and part of the Wall Street financial reform package, goes into effect. The FACS Act mandates that anyone making a negative decision based on an applicant's credit score must disclose the information so consumers can take action to improve it. On July 22, 2011 the FACS Act goes into effect. The FACS Act, or Fair Access to Credit Scores Act, is part of the financial overhaul better known as "FinReg."

The FACS Act requires anyone who uses a credit score as their basis for an adverse decision, of any kind, to disclose that score to the applicant. This includes lenders, insurance companies, automotive loans, department stores, utility companies and property management companies. The score disclosure requirement will apply for a credit denial or an adverse approval.

The requirements of the FACS Act are more comprehensive than those of the Risk Based Pricing rules and they're much easier for lenders to understand their obligations.

Who Gets Left Out in The Cold- Neither the Risk Based Pricing rules nor the FACS Act allow for us to get free copies of our credit scores annually like we can get our free credit reports annually through www.annualcreditreport.com.

You have to, at least, apply for something in order for the free score to be a possibility. The argument is that if you've been approved for whatever you're applying for at the best rate then you have good enough scores and have less of a reason to see them.

Is this a valid argument? I'll let you decide.

For more details of the legislation check out MainStreet's look at what the FACS Act covers.

Copyright © AK Debt Solutions 2011- Tick, tick, tick... Consumers are counting down the minutes until 7/22/11...but what about consumers with a Good Credit Score?