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Credit Report Trigger Leads - Banned in Minnesota

Banned in Minnesota: Credit Report Trigger Leads

One of the better pieces of legislation to come out the Capital in Saint Paul this year is a law banning the sale of what are known as "trigger leads".

The new law prohibits consumer reporting agencies or any other business entity from selling or exchanging with a third party information that a person's credit history was requested in connection with a mortgage loan application.

In other words, until today, any time you applied for a mortgage, or had a mortgage lender run your credit report, that information, along with whatever other data was available in your file (credit score, current address, telephone number, loan balances, etc.)  was immediately sold by the credit repositories - Experian, Equifax, Trans-Union, to all sorts of bad lenders from coast to coast. They would then use that data to solicit you for a loan, often using shady bait-and-switch tactics to trick you into doing business with them. 

The credit bureau's defend the practice by saying it gives more "choice" to the consumer.  The realtity is it was a money making(as if anyone would choose to be hounded by lenders who will try to trick them.)

It WAS a perfectly legal practice in Minnesota.  The good news is it no longer is here, and for the rest of the states, you can opt-out, so your name is not included in these trigger lists.

Though we have always recommended shopping for a mortgage lender to work with, this should be done on your terms, with a lender of YOUR choice, as opposed to someone who paid good money to get your name, then would say or do anything to recover their costs.

Trigger leads are a horrible practice, a breach of consumer privacy, and need to be ended nationwide as soon as possible. 

The Law

Down at the Capital in Saint Paul, and Sponsored by Rep. Kurt Zellers (R-Maple Grove Minnesota) and Sen. Warren Limmer (R-Maple Grove Minnesota), a new law prohibits consumer reporting agencies or any other business entity from selling or exchanging with a third party information that a person's credit history was requested in connection with a mortgage loan application, unless the third party holds an existing mortgage loan on the property. Most of the law takes effect Aug. 1, 2007.

The law also contains provisions for:

• increasing the dollar amount and other aspects of the homestead exemption from creditors, and provides for inflation adjustments;

• prohibiting real property from being subject to execution under certain conditions involving the homestead or other property rights of non-debtors, such as the spouse of the debtor;

• modifying provisions relating to the sale of homestead property; and

• building contractors to bring action against subcontractors for contribution or indemnity. This provision is retroactive to June 30, 2006.

Comment balloon 2 commentsJoseph Metzler • December 07 2007 08:26AM

Comments

Joseph, I have to confess when they first came out I did buy them and it worked at the begining but then.  After using them for only a few months that lead source went crazy.  I stopped ordering them because I truly felt sorry for those people. I spoke to a woman who had 50 phone calls within 48 hours. When speaking with her I told I know it must seem that way... No She really did she had the names of 49 other companies prior to me calling her.. that was the last time I ever bought triggers. 
Posted by Matthew J Blum - (retired from the business) about 13 years ago
Thanks for the info I'm not sure what the rules are in Michigan
Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) about 13 years ago

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