UNOFFICIAL COPY 24 RS BR 2514
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A RESOLUTION urging the United States Congress to amend the Fair Credit 1
Reporting Act to prohibit the practice of consumer reporting agencies selling or otherwise 2
furnishing trigger leads relating to a consumer without the consumer's prior consent. 3
WHEREAS, the federal Fair Credit Reporting Act permits credit reporting agencies 4
to sell a consumer's information to lenders and data brokers for the purposes of 5
"prescreening" to make a firm offer of credit, 15 U.S.C. sec. 1681b(c); and 6
WHEREAS, this practice provides notice to the lenders and data brokers that a 7
consumer is seeking to engage in a credit transaction or loan with another lender, which 8
is known as a "trigger lead"; and 9
WHEREAS, the federal law allows these trigger leads to be furnished without the 10
consumer's knowledge or approval; and 11
WHEREAS, consumers who engage in a credit transaction, especially when 12
applying for a mortgage loan, receive a barrage of unsolicited emails, text messages, and 13
phone calls from the lenders and data brokers that are frequently incessant, 14
overwhelming, and confusing; and 15
WHEREAS, these unsolicited calls, texts, and emails have increased sharply in 16
recent years, resulting in consumers receiving dozens or even hundreds of trigger lead 17
solicitations; and 18
WHEREAS, these unsolicited calls, texts, and emails often confuse the consumer 19
into thinking that their financial institution is making the solicitation or has sold their 20
information without their consent; and 21
WHEREAS, the practice of consumer reporting agencies selling trigger leads has 22
become abusive and exploitive and is eroding the trust that consumers have in their 23
financial institutions and in the financial system; and 24
WHEREAS, according to November 30, 2023, testimony before the United States 25
Senate Committee on Banking, Housing, and Urban Affairs by the Director of the 26
Consumer Financial Protection Bureau, more companies are obtaining and weaponizing 27 UNOFFICIAL COPY 24 RS BR 2514
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consumer data; and 1
WHEREAS, while the federal law allows consumers to opt out of receiving 2
prescreened offers or other solicitations, the consumer is not notified of this option until 3
after the consumer receives a written offer of credit from the soliciting lender, and 4
furthermore, the notification is not required in cases of phone solicitations and offers; and 5
WHEREAS, in order to opt out under the federal law, consumers are required to 6
provide personal information over the phone or enter the information onto a website, 7
which includes their name, address, Social Security number, and date of birth; and 8
WHEREAS, multiple bills have been filed in the United States Congress, including 9
"Protecting Consumers from Abusive Mortgage Leads Act," the "Trigger Leads 10
Abatement Act of 2023," and the "Homebuyers Privacy Protection Act," seeking to 11
amend the federal Fair Credit Reporting Act to address and abate this practice; and 12
WHEREAS, numerous financial trade and other organizations, including the 13
American Bankers Association, the Independent Community Bankers Association, the 14
Mortgage Bankers Association, the National Association of Mortgage Brokers, the 15
Consumer Federation of America, and the Center for Responsible Lending, have urged 16
Congress to support and enact legislation that curbs the practice; and 17
WHEREAS, it is imperative that the United States Congress act to protect the data 18
privacy of consumers by prohibiting the selling or furnishing of consumer information 19
without the consumer's prior consent; 20
NOW, THEREFORE, 21
Be it resolved by the House of Representatives of the General Assembly of the 22
Commonwealth of Kentucky: 23
Section 1. The General Assembly urges the United States Congress to amend 24
the Fair Credit Reporting Act to prohibit the practice of consumer reporting agencies 25
selling or otherwise furnishing trigger leads relating to a consumer without the 26
consumer's prior consent. 27 UNOFFICIAL COPY 24 RS BR 2514
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Section 2. The Clerk of the House of Representatives is directed to transmit a 1
copy of this Resolution to the President of the United States, the Speaker of the United 2
States House of Representatives, the Minority Leader of the United States House of 3
Representatives, the Majority Leader of the United States Senate, the Minority Leader of 4
the United States Senate, each member of the Kentucky Congressional delegation, and 5
the Governor of the Commonwealth. 6