Protect your privacy - 3 things we need to help you with...opt out when applying for loan, know your consumer rights and freeze your credit files. Credit Repair USA Financial Solutions can help you! creditrepairusa.us/schedule

Applying for a LOAN?.....You may be surprised to learn how fast Experian, Equifax and Trans Union are selling your customer's data to the highest bidder. 

If you’ve experienced an influx of junk mail and phone solicitations from creditors, banks, and mortgage companies since you started the loan application process, you may want to opt out from what we call “Trigger Lists.” Whether it is a home, auto or business loan....someone is buying that list!

While it’s not strictly ethical, the three credit bureaus—Equifax, Experian, and TransUnion—are legally allowed to sell your name, FICO score, phone number, and other pertinent data once your mortgage professional has pulled your credit report. Within 24 hours of a credit pull, you could be stuck fielding calls and junk mail from companies trying to sell you mortgage-related services. We know it makes us mad too!!!!!

The three credit bureaus have created a de facto marketing department for mostly large mortgage companies willing to pay upwards of $30,000 a month for these lists. Most notably, Experian’s Prospect Trigger Report provides your client’s name, FICO scores, phone number and other pertinent data as fast as 24 hours after you pull your client’s credit report.

Lenders with substantial marketing budgets are able to buy lists of consumers who have had their credit accessed for mortgage purposes and immediately begin soliciting those consumers over the phone. Most small to medium size brokerages are often unable to afford this type of expense on a regular monthly basis. Large corporations, on the other hand, do not face the same expense restrictions further putting the average mortgage broker at a distinct competitive disadvantage.

This is creating a very uneasy situation in the mortgage industry. By default, almost every small to medium size mortgage broker is becoming a lead factory for large mortgage banks prepared to swoop in and take your hard-earned customer. The National Association of Mortgage Brokers (NAMB) has taken a strong stance against this practice as a violation of the FCRA and as a practice not in the best interest of consumers. The association has met with representatives of the FTC and Congress to discuss the use of prescreening by third party lead generators and the potential negative impact it will have on consumers and the mortgage industry.

We certainly will hear more about the practice of Trigger Lists in the months ahead. In the meantime, consumers can opt-out by visiting www.optoutprescreen.com and completing the simple 5-year opt-out form or by calling 888-567-8688. When discussing this option with your clients please make them aware of the following:

• Opting out (or not opting out) has no impact on their credit score. 

• Removing their name from these lists for firm offers of credit or insurance DOES NOT affect their ability to obtain credit or insurance. 

• Consumers may not submit opt-out requests on behalf of other members of their family. 

• The opt-out process can take up to 5 business days to take effect. 

Consumer Rights

The Fair Credit Reporting Act (FCRA) guarantees you certain credit-related rights including access to your credit file, accuracy of the information in your credit file, and the privacy of your personal credit information. Please visit our FCRA Rights overview page for more information. You can also visit the official Credit and Loans page of the Federal Trade Commission (FTC).

What a credit freeze does

A credit freeze (sometimes called a security freeze) gives you the maximum amount of control over your credit information. It ensures that no one can obtain new credit, loans, or services in your name without your explicit permission.

What you need to be aware of

Placing a security freeze on your credit may cause delays in the timely approval of credit applications that you have made. This is because, when you have a security freeze in place, lenders and other credit-related parties will be unable to access your credit. To avoid inconvenience, plan ahead when placing a freeze.
It’s also important to remember that only you can lift the security freeze, and that you must do so with each of the credit bureaus individually.

How to initiate a credit freeze

A security freeze is put in place via one of the three credit bureaus. It is a bureau-specific action, meaning that to completely freeze your information, you must contact each of the three main credit bureaus. Save the logins in a easy spot so you can toggle on and off when needed,!!!!!

Equifax

Experian

TransUnion

Reminder we are taking more financial planning clients for the new year. Financial planning involves budgets, investments and credit reviews. Book your consult today.