If you've recently applied for a mortgage, car loan, or personal loan, you may have noticed an influx of phone calls, emails, and text messages from various creditors. These unsolicited offers, known as trigger leads, can often feel overwhelming — and in some cases, even harassing.
But what exactly are trigger leads? Why do they happen, and how can you stop them? In this post, we’ll break down the details and discuss recent changes that could impact how trigger leads affect you in the near future.
What Are Trigger Leads?
Trigger leads are sales leads generated when a consumer applies for credit. For instance, when you apply for a home loan, auto loan, or personal loan, a credit inquiry is recorded by one of the major credit bureaus (Experian, Equifax, and TransUnion). This action "triggers" a notification to these bureaus that you are actively seeking credit.
Once triggered, the credit bureaus can legally sell certain aspects of your information — like your name, phone number, and loan details — to other creditors, who will then reach out with unsolicited offers of credit.
How Do Credit Bureaus Use Trigger Leads?
The credit bureaus track your credit inquiry and, using this data, create trigger leads for lenders to buy. These lead buyers may include banks, mortgage companies, or auto loan providers looking to target consumers actively seeking credit. This practice can lead to an influx of unsolicited phone calls, emails, and text messages, which many people find invasive.
The Latest News on Trigger Leads: What’s Changing?
This summer, there was significant movement to protect consumers from these unwanted solicitations. The U.S. House of Representatives and the Senate passed H.R. 2808, the Homebuyers Privacy Protection Act. The bill is now headed to the Executive Branch for signature by President Trump. Once signed into law, this bill will put an end to the sale of trigger leads, effectively curbing the issue of unsolicited credit offers.
This law is expected to take effect six months after it’s signed, which means relief may be just around the corner for consumers who are tired of dealing with unwanted solicitations.
Are Trigger Leads Legal?
Yes, trigger leads are currently legal. The practice was originally allowed to encourage competition within the credit industry. The idea was that by making consumers aware of other credit offers, they would be able to shop around for the best loan terms and interest rates. However, the law is set to change, and trigger leads will soon be banned under the Homebuyers Privacy Protection Act.
Will Waterstone Mortgage Sell My Information?
At Waterstone Mortgage, we take customer privacy seriously. We do not sell your personal information to third parties. However, the credit bureaus (Experian, Equifax, and TransUnion) we use to pull your credit score are legally allowed to share certain details with other lenders and lead buyers. This includes:
- Name
- Address
- Phone number (sometimes email)
- Partial credit information, such as approximate credit score range and loan amount
- Type of credit applied for (e.g., mortgage, auto loan)
It’s important to note that credit bureaus cannot share sensitive, identifiable information such as your Social Security Number or exact credit score. These privacy safeguards help protect your most personal data.
How to Opt Out of Trigger Leads
If you want to prevent your personal information from being sold as a trigger lead, you can opt out using the following methods:
- OptOutPrescreen.com — This official site covers all three major credit bureaus.
- Or, call 1-888-5-OPT-OUT (1-888-567-8688) to opt out by phone.
While opting out will stop the majority of unsolicited credit offers, keep in mind that it won't eliminate every single unwanted call or email. However, it will significantly reduce the number of trigger lead solicitations you receive.
