If you’ve ever applied for a loan or a mortgage, you might have heard about something called “trigger leads.” In this blog post, we’re going to discuss what trigger leads are and, more importantly, how you can protect your personal information from sharing it without your consent.
What Exactly Are Trigger Leads?
Trigger leads are part of the lending world, especially in the mortgage and credit areas. So, when you apply for a loan, the lender checks your credit report to decide if you are qualified for a mortgage. Lenders perform a “hard inquiry” on your credit report, which becomes a part of your credit history.
When credit bureaus use your credit report for this purpose, they can utilize your information to create lists of potential customers for other lenders. Credit bureaus sell these lists, calling them trigger leads, to various mortgage brokers, lenders, and financial institutions interested in providing their loan services.
But here’s the catch – trigger leads can raise a few eyebrows due to privacy concerns and unwanted solicitations.
Why Are Trigger Leads Controversial?
The controversy mainly centers on two issues:
1.Consent from Borrowers: Most borrowers remain unaware that other lenders are purchasing their information. So, they might end up getting unsolicited calls, emails, or mailings from these lenders, which can feel like an invasion of privacy.
2. Consumer Protection: Some folks worry that trigger leads can lead to predatory lending practices. Borrowers who recently applied for loans may be in tough financial spots and could be more likely to accept less-than-great loan terms because they’re desperate or not aware of their options.
Learn How to Prevent the Sale of Your Borrower Info
Your privacy is super important, especially in today’s digital world. Implement these easy steps to prevent the sale of your borrower information as trigger leads:
1. Say No to Pre-Screening: You have the power to opt-out of pre-screened credit offers. You can visit https://www.optoutprescreen.com and register your information, or you can visit the official websites of the major credit bureaus (Equifax, Experian, and TransUnion) and follow the instructions to remove your name from lists that companies sell to other parties for promotional purposes.
2. Say No to Unsollicited Calls: Simply go to https://www.donotcall.gov and register your phone number to stop unsolicited calls from those who have bought your information.
3. Freeze Your Credit: Think about freezing your credit reports with all three major credit bureaus. A credit freeze makes it tough for lenders to access your credit report without your clear permission.
4. Keep an Eye on Your Credit Reports: Regularly check your credit reports to spot any unauthorized inquiries or accounts. You can get one free credit report from each bureau every year at AnnualCreditReport.com.
5. Be Choosy with Loan Applications: Be careful about who you share your info with when applying for loans or credit cards. Do your homework and apply only with reputable lenders.
6. Read Those Privacy Policies: Take a few minutes to go over the privacy policies of lenders and financial institutions before handing over your info. Look for options to opt-out and check how they handle your data.
7. Report Unsolicited Offers: If you get unsolicited offers based on trigger leads, don’t hesitate to report them. You can reach out to the Consumer Financial Protection Bureau (CFPB) or your state’s attorney general’s office.
Conclusion
Understanding trigger leads and their workings is a wise step to protect your personal information and privacy.
Proactively opt out of pre-screening and monitor your credit reports to minimize sharing risks and boost your privacy. Stay informed and prioritize self-protection in today’s connected world. Stay savvy!