Have you ever had your credit report pulled when applying for a loan, only to be swarmed with calls from creditors trying to sell services or offer loans?  This isn’t a coincidence, and is one of the most annoying aspects of applying for credit for today’s consumers.  If you’ve ever wondered why you get bombarded with calls when applying for credit, it comes down to one thing:  Trigger leads.  Trigger leads are data sold to lenders by the credit bureaus.  When you have your credit pulled, the credit bureaus let other creditors (that you may not have any relationship with) know that you’re seeking a loan, and they provide your contact info so those creditors can reach you.

While consumers sometimes think the lender they applied with has done something wrong or their information has been leaked, the reality is it’s the credit bureaus selling this data.  Consumers do have some recourse in opting out by calling 1-888-5-OPT-OUT (1-888-567-8688), but the reality is some unscrupulous lenders may still call, disregarding the do not call list and betting on the fact that consumers won’t follow through with complaints.  The only other recourse aside from opting out is in fact pursuing complaints and lawsuits against companies violating the do not call list.

Is there anything lenders can do to stop ‘trigger lead’ calls?

Yes, and no.  Lenders can remove some personal information when pulling a credit report, but some information is required to get the report.   With the massive increase in data gathering over the past decade, it’s very likely that even if a lender removes some of your personal info, the credit bureaus will likely have it stored away.

So your lender may do their best to protect you, but thanks to big data, there’s little to stop the credit bureaus from selling your data.

Who are the lenders that are calling?

Any lender that is willing to pay the credit bureaus for your data may end up with your information.  They may be reputable, they may not be.  The credit bureaus sell your info to just about any bidder, and it’s not uncommon for dozens of creditors to end up with your personal contact information along with information that you’re applying for a loan.

What can consumers do?

We recommend opting out to drastically reduce the numer of inbound calls: 1-888-5-OPT-OUT (1-888-567-8688).  Aside from that, if you find it offensive that you’re required to have credit run to obtain a loan, with 0 protection from the credit bureaus regarding the sale of your data, it may be worthwhile to drop your local congressperson a note or file consumer complaints against the credit bureaus themselves.

Otherwise, it’s best to ignore the calls as best as you can – they should stop after a few days or, at worst, weeks, and they’re usually worst within a few days of having your credit run, so if you know you’ll be having your credit pulled or are applying for a loan, it may be best to just ignore unrecognized callers for a few days.

Do credit bureaus sell your information – they do, but hopefully we’ve provided some ways to help, or at least offer an understanding of what’s happening when your credit is pulled.  It’s not your lender causing the influx of calls, and there’s little anyone other than you can do to mitigate or eliminate the calls altogether.  The good news is that the huge influx of calls is usually short lived, and you can rest assured ignoring the calls results in unscrupulous lenders having wasted money purchasing your data.

The post Trigger Leads – What Are They & What You Can Do appeared first on Mason-McDuffie Mortgage Corporation.

What is a Trigger Lead

When your credit is pulled, the credit bureaus have a record of the credit inquiry, and unfortunately, they sell this information to bidders in the form of “leads”.  This generated “lead” is sold to lenders, letting them know you’re in the market for a mortgage.  They sell this data with complete disregard for your privacy or your desire or lackthereof to talk with any lenders or loan officers.  Seem unethical?  Trigger leads are a hot topic in the mortgage industry and are one of things most consumers don’t fully understand.  Lenders don’t have any ability to stop the data being sold, as it’s sold from the credit bureaus.  Worse, the data is often sold to numerous lenders, which results in many phone calls after credit is pulled for a mortgage.  But there are steps consumers can take to eliminate these calls, or at least slow them down.

What You Can Do 

1. Opt-Out of prescreened offers.
2. Register with the Do-Not-Call Registry, donotcall.gov.
3. Contact the Federal Trade Commission.
4. Contact Congress.
5. Stop other forms of direct marketing by visiting the Direct Mail Association’s Web site at: dmaconsumers.org/consumerassistance.html.

Since many “trigger lead” lenders are not reputable, it’s best to ignore these calls and the mail that is likely to show up in your mailbox as well, and to pay attention to the fine print – many times the mail sent is designed to look like it’s from your current lender, with only the fine print showing who the real sender is.  These mail pieces often contain “too good to be true” loan terms, and again, in the fine print you’ll usually be able to see enormous fees and other loan terms that are not borrower-friendly.

It’s important to know that your loan officer or lender doesn’t initiate these calls, and it’s not the credit pull itself that causes these calls, but the credit bureaus selling information after the credit pull and them placing you on a prescreened list.  One piece of good news to keep in mind as well is that these additional calls and mail do NOT mean your credit was run again – while a hard credit inquiry by your original lender will appear on your credit report, any other companies calling do NOT have access to your credit report or history, so the calls you’ll receive do not mean any of your personal private information was compromised.

Think this practice should be put to a stop?  You’re not alone!  Many others feel trigger leads are unethical, and the best way to change this practice is by voicing your concerns for your local congressional representatives (you can find them by calling 202-224-3121) or by contacting the FTC at ftc.gov.

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