So, you’ve applied for a loan, and now you’re settling into a new home, or driving around in a new car, or starting up the business you’ve always dreamed of, but what are these random emails, calls, and texts you’re suddenly receiving? Have you ever noticed that after you apply for a loan, there is an uptick in the frequency of these notices? You may wonder why this happens and what you can do to stop it. MidAmerica National Bank (MNB) is not the one selling your information, but another company may be. Our expert on Trigger Leads, Kate Cobb, AVP Mortgage Loan Underwriter at our Macomb Banking Center, outlines below how this can happen and measures you can take to prevent it.
What are Trigger Leads?
Kate Cobb (KC): Trigger leads are unsolicited calls, texts, and emails from different banks, mortgage lenders, insurance companies, or other businesses. They are typically received after applying for credit with MidAmerica National Bank or another institution.
How do Trigger Leads work and how do these other businesses get your information?
KC: When you apply for a loan, MNB pulls a copy of your credit report. This credit inquiry is a “trigger” that says you are looking for new credit. The credit bureaus then sell a list with this information that says you are looking for a new loan. Many types of companies buy this information, including mortgage lenders, auto lenders and car dealerships, credit card companies, and insurance providers.
What steps can you take to prevent Trigger Leads?
KC: Unfortunately, MNB cannot control the sale of this information. However, you, as the consumer can! There are two important ways to limit the sharing of your information. The first is to go to OptOutPrescreen.com. From there, you can opt out of prescreened offers of credit or insurance for 5 years electronically. You can also call 1-888-5-OPT-OUT (1-888-567-8688). You also have the ability to complete a permanent opt-out by mail.
Second, you can visit DoNotCall.gov to sign up for the Do Not Call Registry. This registry is managed by the Federal Trade Commission (FTC) and limits unwanted sales calls.
What else should you know about Trigger Leads?
KC: It’s important to opt out BEFORE applying for new credit. It can take up to 5 business days for your opt-out request to take effect with the credit bureaus, so if you have already applied for credit, you may still receive offers from companies who purchased your information prior to it taking effect. You may also still receive offers from companies that do not use the Consumer Credit Reporting Companies to compile their lists.
While trigger leads are frustrating and can feel intrusive, they ARE legal. They are made to promote competition among lenders and are supposed to be for the customer’s benefit, even though it doesn’t feel that way.
At MNB, we work hard to keep your information confidential, and we do not sell it to other businesses when you apply for a loan. If you have questions about Trigger Leads or our loan products and services, give us a call at 877-647-5050 or visit one of our banking centers today!