Consumers were offered an opportunity to obtain online "preapproval" for a loan based on the company's review of the consumer's credit report, as well as information supplied by the consumer.Ĭonsumers who were "preapproved" for online loans received an online letter containing the terms of the loan - the loan amount, interest rate, points, and annual percentage rate - for which the consumers were preapproved. According to the FTC complaint, for a period of about one year, Quicken Loans offered approximately 35 different mortgage loan products on its Web site, as well as additional loans that were available offline. ![]() Quicken Loans is one of a growing number of companies that offer loan products online. ![]() "An adverse action notice is the key to maintaining the accuracy of sensitive personal information and the signal to check your credit report for accuracy." Howard Beales, III, Director of the FTC's Bureau of Consumer Protection. "Consumers who are denied credit or other benefits based on their credit report have a right to know, and lenders have a legal responsibility to tell them," said J. The proposed consent agreement, announced today for public comment, would require that whenever Quicken Loans takes any adverse action with respect to an application for credit, either in whole or in part because of information contained in a credit report, it must provide to the applicant the notice specified in section 615(a) of the FCRA. The notice is designed to give consumers the opportunity to dispute the accuracy or completeness of the information in the credit report. The FTC alleges that Quicken Loans failed to comply with the provisions of the Act that require credit grantors who take adverse action - for example, denial of credit, insurance, employment, or certain other benefits - to notify the consumer when the action is based wholly or partly on the consumer's credit report. Quicken Loans Inc., a mortgage lender based in Livonia, Michigan, has agreed to settle Federal Trade Commission charges that it failed to provide "adverse action" notices in violation of the Fair Credit Reporting Act (FCRA). About the FTC Show/hide About the FTC menu items. ![]() News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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