AR CEO Matt wrote a blog about "trigger leads" and what an unwarranted invasion of privacy they are.
For those who may have never heard of a "trigger lead" (like me before now), Matt describes them thusly:
"What is a trigger lead?
After a lender receives a loan app for a potential borrower, the first things they do is to pull a credit report, that includes information from the three major credit bureaus. This request for a credit report triggers an alert to these credit bureaus that the borrower they are running the check for is in the market for a loan. These alerts packaged along with the persons private information and anything gathered via the lender pulling the report is packaged up into a "hot lead" to be resold."
I agree with Matt that this practice is distasteful and I would not want to do business with anyone that called me after having gathered my name just because I had applied for a loan or even insurance, at one of his or her competitors.
Fortunately the provisions of the Fair Credit Reporting Act that allow this practice described below:
"Under the Fair Credit Reporting Act (FCRA), the Consumer Credit Reporting Companies are permitted to include your name on lists used by creditors or insurers to make firm offers of credit or insurance that are not initiated by you ("Firm Offers")."
also provide a solution. You are allowed to choose to continue to receive these unsolicited offers or you can choose to opt out permanently or for a period of 5 years.
"he FCRA also provides you the right to "Opt-Out", which prevents Consumer Credit Reporting Companies from providing your credit file information for Firm Offers.
" Through this website, you may request to:
Opt-Out from receiving Firm Offers for Five Years - (electronically through this website).
Opt-Out from receiving Firm Offers permanently - (mail Permanent Opt-Out Election form available through this website).
Opt-In and be eligible to receive Firm Offers. This option is for consumers who have previously completed an Opt-Out request - (electronically through this website)."