FOR RELEASE:  FEBRUARY 11, 1992

             "RISK SCORES" ON CONSUMER CREDIT REPORTS
                  MUST BE DISCLOSED TO CONSUMERS,
      FTC SAYS IN REVISED COMMENTARY ON CREDIT REPORTING LAW

     When a credit bureau develops risk scores or other point
scores to help employers, insurers or credit grantors evaluate the
consumer credit reports they request from the agency to help
assess consumers' applications for jobs, credit or insurance, the
bureau must also disclose these scores to any consumers who
request information about themselves maintained by the bureau,
under a revised Federal Trade Commission interpretation of the law
governing these records.

     The FTC announced this new interpretation of the Fair Credit
Reporting Act (FCRA), which governs the privacy and accuracy of
the consumer credit records kept by credit bureaus (called  "con-
sumer reporting agencies" in the FCRA), in a notice published in
the Federal Register today.  Previous FTC commentary has not
interpreted the FCRA to require credit bureaus to disclose point
scores to consumers "because the score is not used in preparing
future reports."

     In announcing its new interpretation, the FTC noted that
credit bureaus now commonly provide risk scores to help clients
interpret credit reports.  Through recent investigations in the
consumer reporting industry, the Commission has learned that, in
some instances, the risk score is all the bureau gives to a cli-
ent.  Further, according to the revised commentary, the legisla-
tive history of the FCRA indicates that consumers should have
access to all information that is provided by a credit bureau to
assist the bureau's client in judging eligibility for credit,

                             - more -
FCRA Revised Commentary--02/11/92)

employment, insurance or any other specific purpose for which it
is permissible to obtain a consumer credit report.  Credit bureaus
provide risk scores "specifically to assist [the] client in making
a judgment as to the worthiness of the consumer's application,"
the Commission said.

     Copies of the Federal Register notice announcing the change
in the FCRA commentary are available from the FTC's Public
Reference Branch, Room 130, 6th Street and Pennsylvania Avenue,
N.W., Washington, D.C. 20580; 202-326-2222; TTY 1-866-653-4261.

                               # # #

MEDIA CONTACT:      Bonnie Jansen, Office of Public Affairs
                    202-326-2161

STAFF CONTACT:      David Medine, Bureau of Consumer Protection
                    202-326-3224
                    or
                    Clarke Brinckerhoff, Bureau of Consumer
                    Protection, 202-326-3208

(FTC File No. P854812)
(FCRACOMM)