Credit Report API Simplifies Risk-Based Pricing Rule Compliance

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Merit announces new features in its Credit Engine software address amended Fact Act requirements for lenders who rely on credit scores, algorithms and risk models to set interest rates and pricing

Merit Credit Systems has added capabilities to its credit retrieval software to assist programmers who may be building or updating interfaces to the three nationwide credit bureaus: Experian, Equifax and TransUnion. The Merit Credit Engine (MCE) is now able to retrieve percentile, minimum, maximum and other details about the credit score so that messages, such as “Your credit score ranks higher than 52 percent of U.S. consumers,” can be included in the consumer disclosure.

Recent Federal mandates regarding the Risk-Based Pricing Rule (RBP) have placed a new burden on lenders. The amended FACT Act requires that finance companies and other credit grantors must provide a specifically-worded disclosure to consumers if they use credit scores such as FICO Score or VantageScore to set loan fees and/or interest rates. That disclosure, the Credit Score Disclosure Exception Notice (CSDEN), requires inclusion of information that was previously not available through Experian NetConnect, Equifax ISTS, or TransUnion Net Access. The credit repositories have now updated their specifications and extended their data segments to make the CSDEN data available for automated credit report retrievals.

The Merit Credit Engine now generates an information band in its human-readable credit report containing the disclosure text. More importantly for software developers, MCE collects the required information for the CSDEN, and provides a simple API that makes the data items easily available for programmatic access in a consistent way, regardless of the source credit bureau.

About Merit Credit Systems

Merit Credit Systems ( is a leading provider of enterprise-level credit report software, simplifying direct access to credit information from Equifax, Experian and TransUnion. Merit also provides developer tools for XML credit reports and tri-merge capabilities as options for its Merit Credit Engine software.

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Lewis Rosenfelder
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