Trigger Lead Ban Begins 3/5: LendingTree Says It’s a Win For Consumers

Starting March 5, a new federal law will curb “trigger leads” — the practice of credit bureaus selling a borrower’s information to other lenders the instant their credit is pulled. The change is designed to stop the flood of unwanted calls and texts that often hit homebuyers within hours of applying for a mortgage. LendingTree was proud to support and advocate for the Homebuyer Privacy Protection Act and the effort to end the use of trigger leads in the loan market. For too long, when shopping for loans, consumers have been inundated with unwanted solicitations simply because they took the responsible step of applying for credit. Banning trigger leads is a meaningful win for consumer privacy and transparency, helping ensure borrowers can shop for a mortgage or other loan without confusion or harassment. We appreciate the bipartisan leadership behind this reform and remain committed to policies that promote fair competition and empower consumers to make confident financial decisions. Patrick Brennan, Head of Government Relations at LendingTree, had this to say:  “The ban on the sale of trigger leads is an important step toward improving the consumer experience when shopping for a loan. Consumers should be able to compare offers without facing a wave of unsolicited calls and offers triggered by their application activity. This change will help create a more secure, less confusing experience while preserving fair competition that benefits borrowers.” Additionally, our own survey results show there’s a strong appetite for reform. We found that 89% of loan seekers say they’ve been waiting for the federal government to do more to stop unwanted financial solicitations. You can see that full report here:  https://www.lendingtree.com/home/mortgage/unwanted-communication-survey/