Summary
SB-933 will prohibit financial institutions from encroaching on consumer privacy to engage in deceptive practices with the use of mortgage trigger lead information in addition to requiring clear disclosures of identity.
Background
Currently, credit repositories are permitted to sell individuals' personal information, including sensitive data such as unlisted phone numbers, credit scores, debt history, and more, to data collection companies. These companies, in turn, sell what are known as "trigger leads" to debt collectors and financial services companies, notifying them when a consumer has engaged with a mortgage professional, an insurance professional, or another entity seeking financial products or services.
The consequences of these trigger leads can be widespread and harmful. Consumers are bombarded with relentless calls, texts, and emails, often receiving dozens or even hundreds of communications within hours. This onslaught of unsolicited contact can lead to significant stress and misinformation. In one documented case, a recently widowed spouse of a disabled veteran experienced severe mental strain and required hospitalization after being overwhelmed by trigger-lead solicitations. In another case, a firefighter’s workplace phone number was used, resulting in repeated calls to a fire station as trigger lead originators attempted to reach him. These invasive calls disrupted operations at the station and posed potential public safety concerns. Other examples include individuals answering countless calls believing they were related to urgent family emergencies, such as updates on the health of a loved one. Such consumer testimony demonstrates the need for clearer identification and transparency in these communications.
Similar legislation has been trending in other states across the nation in recent years. Arkansas, Utah and Idaho were among the latest to adopt new consumer protections with respect to mortgage loan trigger leads in 2025.
Proposal
SB-933 protects consumers from mortgage “trigger lead” solicitations by prohibiting deceptive practices in the use of prescreened credit data and requiring institutions to clearly and conspicuously disclose to consumers at the initial point of contact that the institution is not the affiliated with the consumer’s original lender or broker.