FTC Slammed For Credit Bureaus Sale of Consumer Data
Published December 19th, 2007 in Credit News.
The FTC is facing criticism over the credit bureaus’ sale of consumer data, commonly referred to as “trigger lists.”
When a consumer applies for a mortgage, the bank or lender pulls a credit report, creating a credit inquiry, or red flag, which lets the bureaus know what’s going on.
This can be useful if a borrower is applying for numerous lines of credit in a short period of time, but this reasoning seems to have lost its way.
Nowadays, the information that makes up credit inquiries is being sold in trigger lists for big bucks to competing banks and even subprime lenders who plan to extend their own offers to the very same consumers.
And some trigger lists are extremely comprehensive, including the consumer’s name, address, phone number, credit score, existing mortgage balance, and more.
But there have been numerous complaints from organizations such as the National Association of Mortgage Brokers that feel the practice is illegal and unethical, considering it a significant breach of privacy.
The FTC backs the sale of trigger lists, claiming they offer consumers more choices when shopping for a loan.
But in reality, most consumers aren’t looking for more unwanted solicitations from random lenders who could extend bad offers or resell the information to lead generating companies.
The FTC really should take a stronger stance considering the amount of fraud and identity theft that continues to ravage the nation.
You can opt out of trigger lists and other pre-screened credit offers online at Optoutprescreen.com or by calling 1–888-567-8688.
