Attorney General Jason Miyares of Virginia has joined a bipartisan coalition of attorneys general urging Congress to pass the Homebuyers Privacy Protection Act. This legislation aims to curb the abusive use of mortgage credit “trigger leads,” which are sold by credit bureaus to competing lenders and marketing companies. These trigger leads enable third-party lenders to inundate consumers with competing offers, robocalls, texts, and sometimes misleading or fraudulent solicitations.
Although legal under the Fair Credit Reporting Act (FCRA), the practice of selling trigger leads has led to increased complaints and confusion among borrowers. Efforts by state attorneys general to protect consumers have often been hindered by federal preemption in the FCRA.
The proposed Homebuyers Privacy Protection Act seeks to restrict the use of trigger leads only to businesses that have an existing relationship with the consumer or those who have received explicit consent. This would enhance consumer privacy while maintaining healthy market competition.
In 2023, similar legislation was unanimously passed by the U.S. Senate. With growing bipartisan support and backing from various industries, Attorney General Miyares is calling on Congress to swiftly pass this legislation. He emphasizes that it is essential for protecting homebuyers, ending deceptive marketing practices, and ensuring that Americans can pursue homeownership without being exploited.
Virginia’s participation includes collaboration with attorneys general from numerous states and territories across the United States.
