Trigger Leads Sold by Experian, Equifax and TransUnion; Is Consumer Fair Game?

http://PinnacleMortgageBroker.com

     
How to Avoid Trigger Lead Calls or............."How to Stop those Annoying Dinner-time Calls, right after Applying for Loan"

After I've taken a loan application with a borrower client, I always inform them of a Sales Practice that I feel is unethical at best; The Purchase of Trigger Leads by what I refer to as the Vulture Mortgage Companies.

These are the Sales Calls that start coming a few days after the first (legitimate) Mortgage Company has taken the loan application, gathered documents from the client and then pulled their credit from the 3 major repositories; www.experian.com, www.transunion.com, www.equifax.com

These calls vary from, the blatant low-balled rate quote, asking the client if they'd like another quote to compare and usually asking what rate they've been quoted already, then Always undercutting it by just a little, in hopes of peaking the borrowers interest enough to coax another application over the phone. One of the more unscrupulous tactics is to Lie and Not disclose the true nature of their call, by pretending they're a loan processor or similar employee of the Initial legitimate mortgage company the client is already in process with!

These unscrupulous mortgage brokers and their agents, acquire these Trigger Leads by Paying the Credit Repositories a fee for the information of Who, What, When and Where is currently trying to get a new mortgage.

The 3 main credit repositories justify this practice by claiming lost revenue in the billions when the law changed a few years back, allowing all consumers to view their 3 credit reports every 12 months at No Charge by going to www.annualcreditreport.com. This website is mandated and run by, the 3 repositories as a condition of the free annual reports now to be made available if any consumer wants one. Before the new law, the bureaus just charged their $8 or $10 bucks, that they now claim is why they must Sell your Information to off-set this so called loss? Very sneaky, tricky and flat just plain Wrong! You Can Fight Back by Opting Out of these Trigger Leads being Sold by Experian, Equifax, and T.U. by logging onto; http://www.optoutprescreen.com/


How triggers work;

After you submit a loan request, lenders submit an inquiry about your credit standing with one or all of the three major credit bureaus – Experian®, TransUnion®, and Equifax®. This credit inquiry is identified as pertaining to a mortgage application, thus “triggering” an alert that you are a hot prospect (“lead”). The credit bureau can then sell your name, contact information, and select loan criteria to other lenders.

Two ways of looking at triggers

Consumer and industry groups are divided on the issue of trigger leads. On the one hand, some lenders and trade groups, including the Federal Trade Commission, argue that the practice encourages competition and allows customers to better compare loan offers and other offers of credit. On the other hand, to some customers, receiving calls from other lenders after they’ve already submitted an application can feel like harassment. Add to that the potential for scams – unscrupulous loan officers have been known to make it sound as if they’re calling about your application in order to lure you into revealing personal information such as your social security number (which the credit bureaus can’t sell).

If you want to opt-out of trigger programs

There’s no law against the practice of credit bureaus selling your contact information to other lenders, but you do have ways to prevent becoming a trigger lead. In fact, the Fair Credit Reporting Act (FCRA) provides you with the right to "opt-out" of receiving firm offers of credit via the phone number and web site below.

1. Opt-out of pre-screened offers. Call 1-888-5-OPTOUT (1-888-567-8688) or visit www.optoutprescreen.com. You will be asked for personally identifying information including your social security number and date of birth. This method stops trigger leads for five years.


2. You can also opt-out by mail via a separate form found at www.optoutprescreen.com. You will need to print, sign, and mail a letter generated by this form. This method stops trigger leads permanently.


Keep in mind that your request becomes effective within five days of opting out. If you don’t want your information to be sold, you should opt-out at least five days before you begin shopping for a loan. If you have already begun shopping for a loan, you may not see an immediate reduction in firm offers of credit within five days. This is because your name may have already been provided to companies that have not yet mailed their offers to you.

If you have not opted out using the methods above and you requested loan offers through GetSmart, be aware that you may get calls lenders who have bought your name through a trigger lead. Before you give out any personal information, it is a good idea to check if the lender on the phone is one of the GetSmart lenders you were matched with.

I would really like to hear your feedback on this topic as it appears this Trigger Leads Buying practice has started ramping up again - and it appears the Government has not heard enough complaining from the consumer or seen enough petitions calling for it's banishment yet.

Let me hear from you -  What do you think?        Fair Game or Unscrupulous Broker Predators?