Understanding Trigger Leads

Understanding Trigger Leads: What They Are, How They Affect You, and How to Opt Out

When applying for a loan or mortgage, you might be surprised to receive unsolicited offers from lenders you’ve never contacted. These offers often result from something called “trigger leads.” Understanding what trigger leads are, their potential impact on consumers, and how to opt out of them can help you navigate your financial journey with greater confidence and control.

What Are Trigger Leads?

Trigger leads are created when you apply for a loan or mortgage. National credit bureaus—such as Equifax, Experian, and TransUnion—generate these leads by adding your information to a list that is then sold to other lenders. This process occurs shortly after your credit inquiry, often within 24 hours of your loan application.

For example, if you apply for a mortgage with one lender, other lenders might contact you with unsolicited offers, hoping to compete for your business.

How Do Trigger Leads Affect Consumers?

Trigger leads can have several impacts on consumers, both positive and negative:

1. Increased Offers: While additional offers might seem beneficial, they can quickly become overwhelming. You may receive numerous calls, emails, and texts, creating confusion as you navigate your loan application process.
2. Risk of Scams: Unsolicited offers can expose you to deceitful lenders or identity theft. Scammers often pose as legitimate lenders, using trigger leads to exploit unsuspecting consumers.
3. Privacy Concerns: For many, the sale of personal information by credit bureaus feels like a violation of privacy.
4. Decision Fatigue: With multiple offers flooding in, it can be harder to focus on comparing terms and making the best financial decision.

Are Trigger Leads Legal?

Yes, trigger leads are legal. They are permitted under the Fair Credit Reporting Act (FCRA), a federal law that governs how consumer credit information is shared. The FCRA allows credit bureaus to sell consumer information to lenders for marketing purposes.

While this practice is legal, it is not without controversy. Many consumers and financial institutions believe it infringes on privacy and creates unnecessary risks. Community banks and other organizations have advocated for legislative changes to restrict or eliminate trigger leads.

How to Opt Out of Trigger Leads

If you’re concerned about trigger leads, you can take steps to reduce or eliminate them. Here’s how:

1. OptOutPrescreen.com
• Visit OptOutPrescreen.com or call 1-888-5-OPTOUT (1-888-567-8688).
• This official Consumer Credit Reporting Industry website allows you to opt out of receiving prescreened offers for five years or permanently.
• Be cautious: OptOutPrescreen will never contact you directly. Any unsolicited communication claiming to represent this service is fraudulent.
2. National Do Not Call Registry
• Register your phone number at DoNotCall.gov or call 1-888-382-1222.
• While this doesn’t directly stop trigger leads, it can reduce telemarketing calls from other sources.
3. DMA Choice
• Sign up at DMAChoice.org to limit unsolicited marketing communications.
4. Credit Report Freeze
• Place a freeze on your credit reports with the major credit bureaus. This won’t stop trigger leads entirely but can add an additional layer of protection for your credit file.

Important: Opt-out requests may take up to 30 days to process, so plan ahead if you’re applying for a loan or mortgage soon.

Final Thoughts

Trigger leads can be an unwelcome side effect of the loan application process, but they don’t have to derail your plans. By understanding what they are, staying vigilant, and taking steps to opt out, you can protect your privacy and focus on finding the best loan option for your needs.

At Security Federal Bank, we value your privacy and are committed to helping you navigate your financial decisions with confidence. If you have questions about trigger leads or need assistance with your loan application, contact us today. We’re here to help!