Credit bureaus sell and sell your personal information
Jessica White/DC Columnist
Issue date: 6/10/07 Section: Business
Dear Ms. Mortgage Maven,
I need to refinance my home. I am reluctant to do so, however, because the last time I applied for a mortgage I was bombarded by unsolicited calls from mortgage lenders who got my name somehow from the credit bureaus. I have since contacted the three credit rating bureaus to prevent them from selling or sharing my information, but it is my understanding that applying for a mortgage will negate the opt-out status that I placed on my accounts. Is this true?
Thanks!
Ben
Dear Ben,
The credit bureaus (or their affiliates) do indeed sell your information, as it relates to mortgage applications and more. In the mortgage lending arena, one product that they sell is called "24 Hour Trigger Data."
When someone applies for a home loan, credit bureaus can sell that person's contact information to middle men who sell it to lenders. The lenders will then call you and to solicit your business away from the lender who pulled your credit report.
If three or four lenders pull your report, your data could be sold several different times. The lender can specify that it will only buy leads meeting certain criteria. For example, it can specify that it wants people who have a certain loan-to-value ratio, have a certain credit score, or are in a certain geographic region.
According to one data seller that I talked to, it is easier to buy refinance leads (which is exactly your situation) than purchase leads. And the data reseller offers an array of leads for mortgage lenders - verified leads, live transfers, 24-hour trigger leads, Internet mortgage leads, Spanish leads, aged mortgage leads and television response leads. And FYI - the same company also sold leads for debts and insurance, presumably also bought from one or more credit rating bureaus.
Equifax's Web site privacy policy is not exactly easy to find but reads (under Site Assistance FAQs) as of June 1, 2007:
'Does Equifax Consumer Services, Inc. use my Equifax credit file to market its products and services? Does Equifax Consumer Services, Inc. sell my name to direct mail companies? No. However, our affiliate, Equifax Information Services, LLC which maintains your credit file, does provide information to credit card companies and lenders so that they may offer pre-approved credit to consumers as permitted by the FCRA.
I need to refinance my home. I am reluctant to do so, however, because the last time I applied for a mortgage I was bombarded by unsolicited calls from mortgage lenders who got my name somehow from the credit bureaus. I have since contacted the three credit rating bureaus to prevent them from selling or sharing my information, but it is my understanding that applying for a mortgage will negate the opt-out status that I placed on my accounts. Is this true?
Thanks!
Ben
Dear Ben,
The credit bureaus (or their affiliates) do indeed sell your information, as it relates to mortgage applications and more. In the mortgage lending arena, one product that they sell is called "24 Hour Trigger Data."
When someone applies for a home loan, credit bureaus can sell that person's contact information to middle men who sell it to lenders. The lenders will then call you and to solicit your business away from the lender who pulled your credit report.
If three or four lenders pull your report, your data could be sold several different times. The lender can specify that it will only buy leads meeting certain criteria. For example, it can specify that it wants people who have a certain loan-to-value ratio, have a certain credit score, or are in a certain geographic region.
According to one data seller that I talked to, it is easier to buy refinance leads (which is exactly your situation) than purchase leads. And the data reseller offers an array of leads for mortgage lenders - verified leads, live transfers, 24-hour trigger leads, Internet mortgage leads, Spanish leads, aged mortgage leads and television response leads. And FYI - the same company also sold leads for debts and insurance, presumably also bought from one or more credit rating bureaus.
Equifax's Web site privacy policy is not exactly easy to find but reads (under Site Assistance FAQs) as of June 1, 2007:
'Does Equifax Consumer Services, Inc. use my Equifax credit file to market its products and services? Does Equifax Consumer Services, Inc. sell my name to direct mail companies? No. However, our affiliate, Equifax Information Services, LLC which maintains your credit file, does provide information to credit card companies and lenders so that they may offer pre-approved credit to consumers as permitted by the FCRA.
Viewing Comments 1 - 8 of 8
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posted 2/02/09 @ 8:18 PM EST
Thanks for the useful information, I suffered a similar problem and feel powerless to stop it. I wish there was a law preventing my information being used like this. (Continued…)
Angela James
posted 3/17/09 @ 1:58 AM EST
I thank you for the opportunity to share a portion of my moments in time with future generations.
Eleanor Cook
posted 3/17/09 @ 4:22 AM EST
Good scene, interesting post, thanks.
Sharon Theodoric
posted 3/17/09 @ 8:38 AM EST
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Eleanor Cook
posted 3/17/09 @ 11:04 AM EST
Good scene, interesting post, thanks.
Michelle Alvin
posted 3/17/09 @ 4:51 PM EST
Great article. I agree totally.
Alison Gravatt
posted 4/19/09 @ 9:23 AM EST
Indeed an informative article.
Amanda Nordby
posted 6/21/09 @ 11:36 AM EST
Good and interesting article, thanks!
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