Trigger Leads: What are they and how do they affect me?
Have you filled out a loan application (mortgage, car, credit card, etc.) with a lender and wondered why you were quickly contacted by another? This could be the result of trigger leads.
What is a Trigger Lead?
Trigger leads were created by the three national credit bureaus – Experian®, Equifax® and TransUnion. When you apply for a loan through your financial institution, a credit report is pulled and this action triggers an inquiry. Ultimately, the credit bureaus are alerted that you are searching for a loan and they have the ability to sell your information to various lenders who are looking for business leads. These leads are created and sold within 24 hours of a loan application. Other financial institutions may contact you quickly in an attempt to win your business before you finalize a deal with your current lender.
Austin Bank does not sell your information to any third party for marketing purposes!
See the Austin Bank Privacy Policy for additional details.
Is it legal?
Yes. Trigger leads are legal, though many people find them unethical. They meet all Fair Credit Reporting Act regulations and guidelines. The original purpose behind the practice was to give the consumer more buying power by presenting competing offers that may have lower rates or better terms.
While the practice is legal, we encourage our customers to be on high alert when contacted with unsolicited offers. Trigger leads could open consumers up to identity theft, expose them to deceitful lenders and cause confusion during the process of taking out a loan.
Can I prevent this from happening to me?
If you do not want to receive pre-screened offers of credit and insurance, you can take action.
- Put your name and phone number on the National Do Not Call Registry. Ensure you do this 30 days prior to applying for a loan as it typically take a month for it to go into effect. https://www.donotcall.gov/
- Sign up for Opt Out Prescreen. You can opt out of receiving these solicitations for five years or opt out of receiving them permanently by calling toll-free 1-888-5-OPTOUT (1-888-567-8688) or visiting www.optoutprescreen.com. This is the official Consumer Credit Reporting Industry website and phone number to accept and process requests from consumers to Opt-In or Opt-out of credit card or insurance offers. When you call or visit the website, you will be asked to provide certain personal information including your home telephone, name, Social Security number and date of birth. The information you provide is confidential and will be used only to process your request to opt out. The request usually takes one to two weeks to take effect.
- Sign up at DMA Choice (https://dmachoice.thedma.org/) to prevent you from receiving loan offers through the mail. Online registration costs $2 and lasts for ten years.