So, you’ve applied for a home or car loan, and within days you are inundated by offers from companies you may never had heard of. What’s going on? Did the financial institution sell your details to other companies?
In the case of SAFE Credit Union, be assured that we never sell our members’ information or otherwise provide your information to third parties except as necessary to process applications or provide products and services you request. You can find out more about how we protect and use your personal information here.
The reason you may receive offers from other companies is through a phenomenon called “triggered leads.”
How it works
When you apply for a loan, a financial institution retrieves your credit report from one of the three credit bureaus: Experian, Equifax, or TransUnion. This request serves as a “trigger” for companies that scour information from the credit bureaus about who has recently applied for a loan, looking for new customers.
While annoying to consumers, it’s a completely legal practice and seen as encouraging competition by the Federal Trade Commission and the Consumer Finance Protection Bureau.
How to avoid trigger leads
It’s best to take the following steps a month or so before you apply for a loan, as it takes time for the changes to take effect.
- Register with optoutprescreen.com to prevent the credit bureaus from selling your information as a trigger lead.
- Add your phone number to the Do Not Call Registry.
Again, SAFE never sells your information to third parties. We put your personal information and account security as our top priorities.
Read our Privacy Statement for more details on how we use your information.