Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for the credit is increased either wholly or partly because of information obtained from a person other than a credit reporting agency bearing on the consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, certain requirements must be met. The user of such information, when the adverse action is communicated to the consumer, must clearly and accurately disclose the consumer's right to make a written request for disclosure of the information. If such a request is made and is received within 60 days after the consumer learned of the adverse action, the user, within a reasonable period of time, must disclose to the consumer the nature of the information.
Connecticut Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency: In Connecticut, when a creditor receives information from a source other than a consumer reporting agency that may result in an increase in charges for credit, they are required to provide the consumer with a Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency. This notice serves to inform the consumer of the change and provide them with an opportunity to review and dispute the accuracy of the information. Types of Connecticut Notices of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency may include: 1. Mortgage Increases: If a mortgage lender receives information regarding the borrower's creditworthiness or financial situation from sources other than consumer reporting agencies, they may choose to increase the interest rate or other charges associated with the mortgage. In such cases, the lender is required to provide the borrower with a Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency, outlining the reasons for the increase. 2. Credit Card Rate Changes: Credit card issuers in Connecticut must also adhere to the requirement of providing a Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency. If the issuer receives information indicating a change in the cardholder's creditworthiness, they may increase the interest rate or other fees associated with the credit card, requiring them to notify the cardholder accordingly. 3. Personal Loans: Lenders providing personal loans in Connecticut may also need to issue a Notice of Increase in charge of Credit Based on Information Received From Person Other Than Consumer Reporting Agency. If the lender receives information from a source other than a consumer reporting agency that could potentially impact the borrower's creditworthiness, resulting in changes to the loan terms, such as higher interest rates or fees, they must provide the borrower with this notice. The purpose of these notices is to ensure transparency and allow consumers to review the information that may negatively impact their credit terms. It also provides an opportunity for consumers to challenge any inaccurate or outdated information that could result in unfair changes to their credit charges. By receiving these notices, consumers can proactively protect their rights and financial well-being.
