Trigger Leads
WHAT IS A TRIGGER LEAD?
An unexpected side-effect of the home buying process can be the onslaught of calls you start receiving after you apply for a loan.
Whenever you formally apply for credit or financing, your lender pulls your credit report. This is known as a hard inquiry.
That inquiry automatically “triggers” to lenders that you’re looking for new credit. Those lenders purchase inquiry data from the major credit bureaus: Equifax, Experian, and Transunion.
Many types of companies buy trigger leads, including:
Mortgage lenders
Auto lenders and car dealerships
Credit card providers
Insurance companies
Personal loan providers
These companies use the information in trigger leads to market their own credit cards, various types of insurance and loan products to you, with the goal of winning your business for themselves.
ARE TRIGGER LEADS LEGAL?
Trigger leads are legal. Under the Fair Credit Reporting Act, as long as the company that’s buying the trigger leads meets certain legal requirements, they are legal in all 50 states.
If you’re thinking, “How is this legal?,” here’s the logic for it.
The Federal Trade Commission (FTC) and Consumer Finance Protection Bureau (CFPB) actually encourage this type of competition among lenders because they think it gives you a better chance of getting the best possible deal for financing.
So, while trigger leads are frustrating and can feel intrusive, they are legal. And they’re supposed to be for consumers’ benefit, even though it doesn’t usually feel that way.
STOP TRIGGER LEAD BY OPTING OUT!
These calls, emails, or letters often prove to be too much – you CAN stop them (ideally before they start). You have the power to OPT-OUT of any pre-screened offers. You can also add your number to the National Do Not Call list, which gives you the choice about whether to receive telemarketing calls or not.
Opt Out!
It’s easy to opt out! Opting out should stop trigger leads and pre-screened offers. This process can take a few days (up to 5 business days), so if your credit report has already been pulled – this may not block offers immediately.
You can opt out of pre-screened offers for 5 years (or permanently) on the web or by phone.
On the Web: https://www.optoutprescreen.com/ Opt Out Pre-Screen is a joint venture among the three national credit bureaus to allow consumers to control pre-screened offers.
By Phone: 1-888-5-OPT-OUT
I HIGHLY recommend sharing this information with family, friends and clients. Add it as another step in the service you provide to continue to help yourself stand out from the rest.
Step 1: Visit the Site
When on the home page, scroll to the bottom and clock to opt-in or opt-out.
Step 2: Choose How To Opt-Out
Scroll to the bottom of the page and choose how you want to opt-out - “Electronic for 5 Years OR Permanent by Mail”.
Then click “Continue”
**NOTE: The page automatically defaults to the '“Opt-In option” Be sure to choose the radial button by the correct option for “Opt-Out”.
Step 3: Complete Required Fields
Complete the required fields and scroll to the bottom and click “Confirm” to submit your request.
