MIAMI—At the same time new legislation is before Congress seeking to address the problem, an increasing number of consumers are complaining they are receiving spam phone calls almost immediately after applying for home loans and insurance.
Among them is CBS News Miami research director Bryan Dyke, who told his employer he has been “inundated” with calls, texts and voicemails concerning home loans and insurance.
Dyke told CBS News it started after he had already applied for a loan from a lender that his Realtor had recommended. “They started immediately within minutes. Less than five minutes,” Dyke told the news outlet.
Dyke is not alone, which is why legislation has been introduced in Congress in response. The legislation (HR 2808 and S. 146) targets so-called “trigger leads” and seeks to amend the Fair Credit Reporting Act to prohibit consumer reporting agencies from furnishing a trigger lead except in limited circumstances. It passed the Senate during the last Congress but was not passed by the House.
The legislation has the support of credit unions.
CBS News noted a survey by LendingTree.com found that 74% of Americans said they’ve received unwanted calls, text messages, and email after their credit was pulled for a loan or insurance policy.
‘Trying to Make it Illegal’
“It is currently legal, and we’re trying to make it illegal,” Orlando Diaz, president of the Florida Association of Mortgage Professionals, told CBS News.
Diaz told the news outlet Dyke’s situation sounds like a practice called “trigger leads.” That’s where information people put on loan applications is sold by credit bureaus without their knowledge or consent.
“Without the credit bureaus selling that information, there is no way that any marketing company or lenders would find out that they’re applying for a loan with somebody else,” Diaz told CBS News.
Wants Ban in Place
Diaz said he wants Florida law to ban licensed mortgage lenders in Florida from using information obtained from a credit bureau, unless they have a previous existing business relationship. He also would like Congress to ban the practice of selling personal information, unless the consumer opts in.