As I mentioned in my blog yesterday "What Is Going On With CFPB In 2014 Part #1", the Consumer Financial Protection Bureau (CFPB) is reevaluating the impact their decisions may have on the Lending Industry. But they are not just reevaluating the impact of their past decisions, they are also looking at other areas of the Financial Industry. In this blog What Is Going On With CFPB In 2014 Part #2, I want to cover one of those areas which seem to be in the CFPB's radar, the three major Credit Buearus Equifax, Experian, and TransUnion. In particularly the CFPB is investigating the long time practice of the three major Credit Bureaus of selling "Trigger Lists" also know as "Trigger Leads".
For those who are not familiar with "Trigger Lists", they are lists sold by the three national bureaus to anyone who chooses to purchase the information the bureaus receive and generate when a consumers credit report is pulled. You heard it correctly, these national bureaus are selling the private information given by Borrowers to Loan Originators when they run their credit. This means within 12 to 24 hours after I run a Borrower's credit, these bureaus can take the information and sell it without my Borrower's permission. I find this outrageous not only because I feel they are violating my Borrowers privacy, but they are also selling information given to me in confidence to my competitors.
These “Trigger Lists” contain my Borrowers name, address, contact information, credit scores, outstanding balances on revolving debts, and mortgages. I have to work hard to gain a Borrowers trust for them to provide me with this information, and these Bureaus are turning around and selling it to anyone who is willing to pay the price for it. Presently the only recourse a Borrower has to prevent the three major Credit Bureaus from selling their information is to "Opt Out" by calling (888) 567-8688 or going online at www.optoutprescreen.com and telling the Bureaus they DO NOT want the Buearus to sell their information.
The CFPB is looking at this practice and saying, hold on their, why should consumers have to go through the trouble of Opting Out, especially since most of them are not aware of "Trigger List" and the Opt Out process. So the CFPB is telling the Bureaus they are looking into changing the procedure from an Opt Out to and Opt In. The Bureaus do not like this idea, because what consumer is going to choose to let the Bureaus sell their private information?
I for one fully support the CFPB on this change, and hope it happens soon. I have not been a fan of most of the things the CFPB has done to date, but I am 100% behind them on this one.
Hopefully these two blogs "What Is Going On With CFPB In 2014 Part #1" and What Is Going On With CFPB In 2014 Part #2 have helped to provide a little more insight on what is going with the CFPB right now.
**********************************************************************************************
Info about the author:
George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
Comments(32)