'Trigger Leads' Can Mislead Consumers

Attorney General Jason Miyares joins with 41 other Attorneys General across the nation to end the practice of trigger leads, which have led to a growing list of complaints from Virginia consumers.

By Martin Davis
EDITOR-IN-CHIEF
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Photo by Towfiqu barbhuiya on Unsplash

The term “mortgage trigger lead” may not mean much to many consumers, but Virginians regularly experience them.

Simply stated, trigger leads “are generated when lenders report your mortgage details to credit bureaus as part of their standard process. These leads are then compiled by third-parties who use them to send unsolicited offers,” according to CNB St. Louis Bank. Too often, the solicitations are scams designed to capture personal information.

A bipartisan effort has been growing in recent years to significantly curtail or end the practice, which is opposed by the Mortgage Bankers Association as well as the American Bankers Association.

In April, a bill — the Homebuyers Privacy Protection Act — was again proposed in the U.S. House of Representatives to curtail the practice.

Today, Attorney General Jason Miyares issue a press release encouraging Congress to make the bill a law.

Trigger leads are currently legal under the Fair Credit Reporting Act (FCRA), but, the Attorney General’s press release says, “this practice has led to a surge in complaints and confusion among borrowers. For years, state attorneys general have attempted to protect consumers from these practices, but their efforts have been repeatedly undercut by federal preemption in the FCRA.”

According to Miyares’ press release, “The Homebuyers Privacy Protection Act would restrict the use of trigger leads to businesses with a prior relationship with the consumer or those who have received explicit consent, protecting consumer privacy while preserving healthy market competition.”

With this action, Virginia has joined 41 other Attorneys General in sending a letter to Congressional leaders urging passage of the bill.

CNB St. Louis has produced a list of “red flags” to watch for in mail and electronic communications that may indicate that the communication received was generated by a trigger lead.

• Missing logos or unclear branding

• Misspelled or shortened versions of your lender, mortgage company, or financial institution’s name

• Inaccurate loan or identification numbers

• A phone number with an (800) or (888) prefix

• Brightly colored paper such as yellow or pink, designed to grab your attention

• A tiny disclaimer buried at the bottom, stating that the mailing is “not affiliated with your current mortgage holder” or “not endorsed by your current lender”

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