What is a Trigger Lead?
If you’ve ever experienced an uptick in annoying phone calls, spam and junk mail from unsolicited lenders after you’ve applied for credit or financing from a particular lender, you’ve likely been the target of a trigger lead. This happens when the lender you have applied to uses a report from credit reporting agencies (e.g., Equifax, Experian, Transunion) as part of their credit checks. Subsequently, that credit reporting agency can sell your information to other lenders. This is now an industry-wide issue that often causes issues between customers and their banks because customers believe their banks are selling this information. Rest assured, Central Bank WILL NEVER sell credit information to any other individual or company.
Who Buys and Uses These Trigger Leads?
The companies that use trigger leads to market their own products and services include:
Credit Card Providers |
Companies offering credit cards target consumers who have shown recent credit activity, such as applying for a mortgage or personal loan. |
Insurance Companies |
Insurance providers may use trigger leads to offer policies such as homeowner’s insurance, auto insurance, or life insurance to individuals whose recent credit inquiries suggest potential demand. |
Auto Finance Companies and Car Dealerships |
These entities target consumers seeking loans for vehicle purchases or refinancing. |
Personal Loan Providers |
Lenders offering personal loans use trigger leads to reach individuals in need of additional financing options. |
Mortgage Lenders |
Competitors in the mortgage industry leverage trigger leads to offer various mortgage products to consumers who have applied for a home loan. |
Are Trigger Leads Actually Legal?
Yes.
The Federal Trade Commission (FTC) and Consumer Finance Protection Bureau (CFPB) allow trigger leads because they feel competition among credit lenders offers consumers more opportunity to get the best possible deals for financing and credit. So, if a company meets the necessary legal requirements under the Fair Credit Reporting Act, it can buy a trigger lead. In short, trigger leads and “prescreened” offers are seen as a customer benefit by the FTC and CFPB.
You Can OPT Out of Trigger Leads
Opting out is the most dependable method of avoiding trigger leads and prescreened offers. Doing this is easy, though it takes up to five business days to take effect. So, while you still may see an offer if your credit report has recently been accessed, you can feel confident the calls, letters and emails will soon stop. Here’s how to block those offers for five years or permanently:
Go to OptOutPrescreen.com
Visit OptOutPrescreen.com or call 1-888-5-OPT-OUT (1-888-567-8688). The website and phone number for Opt Out Prescreen is operated by Equifax, Experian and Transunion. It lets consumers control prescreened offers.
Put your number on the Do Not Call Registry
Visit donotcall.gov or call 1-888-382-1222. When you register your number at DoNotCall.gov, you’ll get an email with a link you need to click within 72 hours to complete your registration. After 31 days of being registered, you should stop receiving calls. If you continue getting unwanted calls, you can report it to the FTC.
Put Yourself in Control
You don’t have to put up with lack of privacy or the annoying, unsolicited offers generated by trigger leads. Hopefully, you now have a better understanding of what they are and how to put an end to them.
When you decide it’s time to find out more about financing and credit that works for you, we’re here to help.