The Federal Trade Commission is allowing our four Credit Reporting Companies: Equifax, Experian, Innovis, and TransUnion, to re-sell your credit report without your permission.
This is a shocking revelation with serious implications. We feel it is an invasion of privacy and could expose consumers to potential identity theft.
Here's What Happens:
You go to a trusted bank or mortgage company to discuss your financial situation and they pull a credit report to qualify you for a loan. This triggers an alert in the system that you are in the market for credit. The bureau then compiles lists of consumer reports and re-sells them to other lenders on 'trigger lists'. They are re-selling not just your contact details but your actual credit report.
Of course the buyers of these lists target the top FICO score clients first. You may start getting unsolicited calls. Lots of calls. Some people report being harassed dawn to dusk. The callers may imply they are calling from your bank or processor. They make fantastic offers offering ridiculous teaser rates for huge sums of money. It doesn't seem to matter if you have an unlisted number --the calls just keep coming. If you are listed on the Do Not Call List, you can certainly report the offenders at the Do Not Call Registry www.donotcall.gov. The fines are pretty stiff so if you tell a caller you are on this list it's unlikely that person will call again. The calls and letters offering all kinds of credit just keep coming.
The biggest concern is not that the list exists (which is bad enough) but that your actual report is being released. If you've seen a credit report you know it contains a great deal of personal information including account numbers, balances and collections. This puts your mortgage lender in a very awkward position as they are not effectively competing for your business with strangers --with whom you did not choose to share your personal financial information. Unfortunately some unsolicited callers use misleading tactics--claiming to be from 'your bank' or processing department. We are very concerned in the mortgage industry about this breach of consumer privacy.
CBS Video Exposing Practice:
According to a recent CBS online video, the National Association of Mortgage Brokers is very concerned that the reporting agencies are not properly vetting the credentials of all the lenders they are selling these lists to. The Consumer Data Industry Association claims this practice is about providing consumer choice. We beg to ask: "shouldn't a consumer be able to choose with whom I share my personal financial information?" Since we have been conditioned to think that shopping around for the best deal is a good thing, it's easy to fall for the ploy. The problem with this approach is that your FICO score and your financial information are at risk.
Stop this practice: "Opt Out" on this website: www.optoutprescreen.com or call 1-888-567-8688
Recently, a client called to discuss questions from my processor. It turned out the person who had called her was not my processor. I was mystified how they could have known that she was discussing a mortgage until I heard about trigger lists. These days people refinance and move so frequently, I guess the odds of someone expecting a call from 'their bank' must be in their favor. Your lender should provide the names of people who will be contacting you about your loan ahead of time so you can be sure with whom you are speaking.
I assure you that responsible lenders are protesting this practice. I urge consumers to express your concerns to your Senators and Representatives.
Loannetter
© 2007 Susan Templeton, Loannetter
