The American Bankers Association and 16 groups are urging lawmakers to pass legislation banning the practice of credit reporting firms selling consumer contact information to lenders who then barrage those same consumers with unwanted solicitations.
The bipartisan Homebuyers Privacy Protection Act (S. 1467 and H.R. 2808) would amend the Fair Credit Reporting Act to eliminate abusive mortgage “trigger leads” and limit prescreened credit offers to consumers who consent or who have a preexisting relationship with a financial institution. In a letter to the leaders of the Senate Banking Committee and House Financial Services Committee, the groups – which represent a mix of industry and consumer groups – said the bill would protect consumers from the practice.
“Entities that have no relationship with the consumer are buying trigger leads as soon as a customer applies for a mortgage – and then bombarding the applicant with hundreds of confusing calls that seek to lure them away from their chosen lenders,” they said. “Naturally, consumers often call to complain to the mortgage lender they have chosen, accusing that company of selling their data.”
