What is one of the exceptions to the risk-based pricing notice requirement?

The requirement for a risk-based pricing notice stipulates that certain creditors must inform consumers when they receive less favorable credit terms based on credit risk assessments. One of the recognized exceptions to this requirement is when a consumer applies for credit and is granted the specific material terms of that credit. This means that if a consumer is informed about the credit terms they are receiving, there is no need for a separate risk-based pricing notice because they are already engaged with the terms directly.

In this scenario, since the consumer is aware of the terms associated with their credit, the intent of the notice—to provide consumers with insight into how their credit score affects what they are offered—becomes redundant. They are not left in the dark about the ramifications of their credit history with respect to the specific agreement they are entering into. Therefore, recognizing this context allows us to understand why this situation effectively serves as an exception to the risk-based pricing notice requirement.