Ok So I am probably going to get a lot of flames for writing about this blog especially from the Mortgage Brokers and other Loan Officers who rely heavily on trigger lists :)
This is just awareness information for a lot of the consumers who were unaware that your personal and financial information is not quite that private as you think. I know I am a Loan Officer and are probably wondering why am I sharing this information besides being a good awareness promoter, its because I actually don't call the trigger lists and I don't like myself or my clients being bombarded with phone calls from brokers to insurance agents as soon as credit is ran.
I think this should be illegal but apparently its not so I decided to digg deep into this topic and research whats going on. This blog can also be a useful TOOL to help my fellow lenders to protect their own customers from the phone calls and mailers.
So what is a trigger list and how does it work?
Each time that you apply for a credit card, auto loan, mortgage or refinance, your personal information is distributed to lenders, insurance, and credit card companies who have subscribed to product known as a “trigger list”.
- Prospective creditors purchase a subscription to a trigger list service. They set the criteria for their list - for example, anyone who has applied for a mortgage or refinance, in the 15217 area code, with a FICO score of at least 720. They also choose what additional information they would like to have included: names, addresses, phone numbers, mortgage balances, et cetera, as well as how often they would like to receive the list (daily or weekly).
- When you apply for a mortgage or refinance, your chosen lender orders a tri-merge credit report (with your permission).
- Within hours of ordering your report, your file is red-flagged by the credit reporting agencies for inclusion in trigger lists.
- If your profile matches the conditions of any trigger list subscribers, your personal information is sent to those subscribers.
- Shortly thereafter, the subscriber makes you a “firm offer of credit”, usually by mail or e-mail
Even the National Association of Brokers has commented on trying to stop these lists of being sold. Its just downright dirty in my opinion.
How to stop the trigger lists
Well the most common sense thing to do is to have a firm loyalty in place with your client. They are buying from you mostly and your product is not much different than most of your competitors, so you have to differentiate yourself from the rest. Always walk your customer through the process let them know by pulling you credit report too many times can hurt their loan approval.
You may opt out of trigger lists and other pre-screened offers of credit safely and securely online at http://www.optoutprescreen.com/ or by calling 1–888-567-8688. Submitting your opt-out request takes less than five minutes and is the only way to prevent credit reporting agencies from reselling your personal information each time you apply for credit. Requests do take approximately 5 days to process, so don’t delay - opt out today!
You may also want to add your phone number to the National Do-Not-Call Registry (https://www.donotcall.gov/) at this time.
Hopefully this shed some light why when you just purchased something or applied for credit you get bombarded with phone callas and mailers...and how to stop this :)
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