The Homebuyers Privacy Protection Act

Bipartisan support for legislation is rare to see in this political climate. One exception recently occurred with the enactment of the Homebuyers Privacy Protection Act, which amended the Fair Credit Reporting Act (“FCRA”) for purposes of prohibiting the sale of “trigger leads.” Below, we discuss the practice of selling “trigger leads,” the Homebuyers Privacy Protection Act in further detail, and why this law matters to your business.

Consumer Privacy Remains A Central Focus

As consumers know, when applying for a mortgage, car loan, or credit card, a credit check is triggered creating an inquiry on consumers' credit reports. Prior to the passage of the Homebuyers Privacy Protection Act, lenders paid the three primary consumer reporting agencies (i.e., Equifax, Experian, and TransUnion) (“CRA”) to provide information about consumers who applied for loans in order to contact them with prospective offers. Following the data sale, these consumers, or “trigger leads,