What method can a credit union use to determine who receives a risk-based pricing notice?

In the context of risk-based pricing notices, the correct method for a credit union to determine who receives such a notice is through consumer to consumer comparison. This method involves evaluating the credit characteristics of an individual consumer in relation to those of other consumers in a similar context. By comparing the credit profiles of potential borrowers within the same pool, the credit union can identify those who may receive different terms based on their risk level compared to others.

Using consumer comparison informs the credit union about the thresholds that may trigger a risk-based pricing notice, as it reflects how an individual’s credit risk measures up against the broader consumer base. This helps ensure that members are appropriately notified when they are offered credit terms that differ due to their unique risk profile.

The other methods mentioned are less ideal for this purpose. Standardized credit criteria typically apply uniform benchmarks rather than comparative analysis, while general credit terms policies focus on overarching guidelines without individual assessments. Direct member feedback, while valuable for other reasons such as improving services or products, does not provide the necessary comparative analysis required for determining risk-based pricing notices.