Publish Date: April 2023
Picture this – you’ve made the decision to apply for a loan with a bank you know and trust. Now, you’re getting phone calls, emails and even text messages from companies you’ve never heard of. What is going on?
These solicitations are coming from Trigger Leads. Here is how it works:
- You apply for a loan and your lender pulls a credit report to determine your credit score.
- The inquiry for your credit report triggers the credit bureaus (Experian, Trans Union, Equifax) that you are shopping for credit.
- Once credit bureaus know you are shopping, they can sell your information to other lenders. They typically will do this for mortgage loans as part of a Trigger Lead Program, which is a marketing product sold by the credit bureaus. This is completely legal under the Fair Credit Reporting Act with the premise that it could benefit consumers who are truly shopping for credit products.
“Trigger Leads are often frustrating to consumers who do not want to be solicited and think their bank or lender has shared their personal information without their permission,” said Lynne Pinegar (NMLS #466205), Vice President at Fidelity Bank & Trust. “Unfortunately, financial institutions and lenders are not in a position to change this practice because federal law deems it as legal; however, there are some things you can do to keep your information from appearing on trigger lead lists. Trigger leads can also become a serious threat for identity theft, expose you to deceitful lenders and cause confusion so it’s important we address this with our customers,” added Lynne.
Lynne details the following actions to consider protecting yourself against trigger leads:
- CONSUMER CREDIT REPORTING INDUSTRY OPT-OUT
Visit www.optoutprescreen.com. On this site, you can select to opt-out of offers from credit or insurance firms, which will include trigger lead lists by the credit bureaus. There is no cost, but it does usually take one to two weeks for it to take effect.
- DO NOT CALL REGISTRY
Visit www.donotcall.gov to sign up for the Do Not Call Registry. This is also free and should take effect within 24 hours; however, you could still receive calls for up to 31 days since your information may have already been on a list. Please note, being on this registry does not mean all calls will cease.
- VERIFY THE SOLICITOR
If you continue to receive calls or solicitations after applying for a loan, make sure you confirm who you are corresponding with BEFORE providing any personal information. It is best practice to confirm a solicitors identity by researching the phone number or email and making contact yourself versus trusting the information provided to you. Remember, if you have already applied for a loan, the lender will not ask you what amount you would like to borrow, the purpose of the loan, or other loan/identifying information – your current lender will already have that information. If you think you have provided personal information to a solicitor, contact us immediately! View additional tips for keeping you and your finances safe or visit our security page for more resources.
At Fidelity Bank & Trust, confidentiality is of the utmost importance. Our staff is charged with safeguarding your information from day one, and continually receives training on the best consumer information practices. We strive to match you up with top-notch products and rates available…because OUR goal is to help you achieve YOUR goal. That’s what Your Hometown Bank is all about! Stop by or contact us for your financial needs.
