FTC Encourages Consumers to File Complaints of unfair or Deceptive Practices involving 'Trigger Lists"

In response to comments made by National Association of Realtors at a roundtable hosted by the National Association of Mortgage Brokers on Tuesday, March 20, 2007, the Federal Trade Commission encouraged NAR members and consumers to file complaints with the FTC if they encounter unfair or deceptive trade practices relating to the use of trigger lists by lenders and/or lead generators. The practices include "bait and switch" on interests rates, terms, or loan products, deceptive presentation of fees, deception with regard to who the caller or solicitor represents and deceptive presentation of actual services available.

Numerous NAR members and their affiliates have complained that their clients or customers have been victimized by unfair or deceptive practices that are the result of lead generation through so called "trigger lists." Trigger lists are generated when a credit inquiry is made, usually upon application for a mortgage or other credit product. The credit reporting bureaus compile information (prescreening) and sell it to other lenders or lead generators who then use it to contact consumers with solicitations. The process is permitted under the Fair Credit Reporting Act as long as a "firm offer of credit" can be made. In the case of phone solicitations, FTC and credit reporting industry sources, assert that lenders and lead generators must comply with the "Do Not Call" as well. However, many NAR members report that this is often not the case with regard to firm offers of credit and/or "Do Not Call" compliance.

Individuals may "opt out" of receiving prescreened offers of credit by visiting www.optoutprescreen.com.

If one would like to report an unfair trade practice related to trigger lists or prescreened offers of credit, please fill out the FTC Consumer Complaint Form.

~~ NAR Washington Report, March 2007