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Understanding Trigger Leads and How to Opt-Out

Have you wondered why unsolicited calls, text messages, emails, and junk mail from other lenders occur right after you applied for a mortgage or car loan? It is not a result of bankcda  selling your information to other lenders.   The increased contact is likely coming from “trigger leads.”

WHAT ARE TRIGGER LEADS?

First, your personal information is never sold by bankcda.   We value and protect your privacy and personal information.  However, other entities such as credit bureaus have access to your personal information, and they are allowed to sell your personal information to other lenders who pay the credit bureaus for “trigger leads”.

When bankcda pulls your credit report as part of a loan application, that action is recorded by the credit bureau and signals that you are interested in obtaining a loan.  Other lenders, depending on your credit score and other factors, buy this information and your contact information from the credit bureau and use it to make an unsolicited offer to you.  This information is known as a “trigger lead” and credit bureaus sell these leads as a way to make additional money.

 

WHAT IS THE PURPOSE OF SELLING THIS INFORMATION?

Lenders use trigger leads to contact consumers and make unsolicited offers, hoping that you’ll be interested in their financial products or services, because of your recent credit check.

For instance, if you’ve recently applied for a car loan from bankcda, you might find yourself receiving offers from mortgage companies inquiring if you are interested in a home loan. These are trigger leads in action.

 

WHY ARE TRIGGER LEADS CONTROVERSIAL?

  1. Unsolicited Contact: No one likes to be inundated with unsolicited offers, especially when the offer uses our personal contact information or may suggest that the caller has knowledge of our recent loan applications.  Trigger leads can generate these unwanted contacts.
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  2. Privacy Concerns: Many people believe that the sale of this information is an invasion of their privacy. Even if the offers are potentially beneficial, the fact that one’s financial decisions can be sold by a third party like a credit bureau to generate income feels intrusive to many.

 

HOW TO OPT-OUT OF TRIGGER LEADS?

bankcda will never sell your personal information to a third party.  Unfortunately, we cannot prevent other entities like the credit bureaus from selling your personal information that they also have access to.  However, you can take steps to protect your information and prevent this from happening.  These are steps you can take:

    1. OptOutPrescreen.com: This is the official Consumer Credit Reporting Industry website that allows consumers to opt-out of receiving pre-approved and unsolicited offers. By visiting this website, you can choose either a five-year opt-out period or a permanent opt-out.
    2. Contact the Credit Bureaus Directly: If you prefer, you can reach out directly to the major credit bureaus – Experian, TransUnion, Equifax, and Innovis – and request to be removed from lists sold to lenders.
    3. Stay Protected: Always be cautious when sharing personal information online. Use trusted, secure websites, and do not provide personal information when unsolicited communications ask for personal details.

 

What is Beneficial Ownership Information?

To find out more information about Beneficial Ownership Information, please follow this link:

https://www.fincen.gov/boi-faqs

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