Tuesdays Tip: Stopping Trigger Leads

Have you ever applied for a credit card, car loan or a mortgage only to get a call from a dozen other random companies trying to sell you their services? More than likely you became a trigger lead. A trigger lead is generated when the credit company turns around and sells your information to other businesses.

For example, two weeks ago I pulled a credit report and the borrower called me up two days later asking if I was affiliated with mortgage company X or mortgage company Y. Within 48 hours of pulling the report, two other mortgage companies contacted the borrower. It would be difficult for me to prove the information was sold to these other companies, but the borrower claims she hasn't filled out any other information so it is pretty easy to determine the source! Unfortunately, there is very little I can do to stop the action because of The Fair Credit Reporting Act. However, there are a few actions you can take to protect your credit and your privacy:

1. Register with the Direct Mail Association. For a fee of $1 this will get you off the quarterly lists that solicitors use. You should stop receiving those annoying "1.25% APR Home Equity Line!" print advertisements. But be careful, if you fill out information directly with a service provider you may be authorizing them to send you solicitations unless you specifically opt out. Usually you have to check the little box that says "Do no contact me!"

2. Sign up for the National Do Not Call Registry. You need to re-register every 5 years, but it should stop those harassing phone calls where the person on the other line can never pronounce your name correctly!

3. Sign up at Opt Out Prescreen. Opt Out Prescreen prevents 4 of the major credit bureaus from selling your information as a trigger lead -- Experian, Equifax, Transunion, and Innovis. Once again, this will buy you 5 years before you need to re-register. Rumor has it that your credit score may improve by up to 15 points, but I have yet to find any hard evidence! Your credit and your privacy are important, take the necessary steps to make sure you are protected! Feel free to leave additional tips, questions or comments.

Happy St. Patrick's Day! Make it a great day!