Trigger Leads definition
Trigger leads are leads that are generated by three major credit bureaus for lenders and creditors. These leads are based on the recent credit activities of consumers who agreed to have their credit reports pulled. The consumers on the list meet certain criteria that are pre-set by lenders and creditors.
Lenders and creditors purchase inquiry data made by the three major credit bureaus. The three major credit bureaus, Equifax, Experian, and TransUnion, create lists of consumers who recently had a hard inquiry on their credit report. This list of consumers who meet the criteria of lenders and creditors can be sold by the three major credit bureaus through the Fair Credit Reporting Act (FCRA).
The FCRA states that a credit bureau or consumer reporting agency can furnish a consumer report in connection with any credit or insurance transaction that is not initiated by the consumer only if the consumer agrees and if the transaction consists of a firm offer of credit or insurance. This clause under the FCRA allows lenders to purchase trigger leads and use them for marketing and promotional purposes.
The purchase of trigger leads is currently being opposed by House Bill 7661. House Bill 7661 (H.R. Bill 7661) seeks to change the FCRA’s creation and sale of trigger leads in mortgage loans. If signed into law, it will be known as the Trigger Leads Abatement Act of 2022.