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Bill > SF587
IA SF587
A bill for an act relating to solicitation by a financial institution using prescreened trigger lead information from a consumer report.(Formerly SSB 1145.)
summary
Introduced
03/10/2025
03/10/2025
In Committee
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to solicitation by a financial institution using prescreened trigger lead information from a consumer report. Under the bill, a financial institution shall not use an unfair or deceptive practice when using prescreened mortgage trigger lead information derived from a consumer report to solicit a consumer who has applied for a loan with a different financial institution. “Consumer report”, “financial institution”, and “mortgage trigger lead” are defined in the bill. A financial institution is engaged in an unfair or deceptive practice when in an initial phase of a solicitation from a lender or loan broker, the financial institution fails to clearly and conspicuously state that the financial institution is not affiliated with the financial institution with which the consumer initially applied; fails to conform to state and federal law relating to prescreened solicitations using consumer reports, including but not limited to the requirement to make a firm offer of credit to the consumer; uses information regarding a consumer who has opted out of prescreened offers of credit or who has placed the consumer’s contact information on a federal do-not-call registry; or solicits a consumer with an offer of certain rates, terms, or costs, but subsequently changes the rates, terms, or costs to the detriment of the consumer. A financial institution that violates the bill is engaged in an unlawful practice under Code section 714.16.
AI Summary
This bill addresses unfair practices by financial institutions when using "mortgage trigger leads" - consumer reports triggered by a loan application that are then used to solicit potential borrowers. The legislation defines key terms like "consumer report" and "financial institution" and establishes specific rules for how these entities can use such information. Financial institutions are prohibited from engaging in deceptive practices when soliciting consumers who have applied for a loan elsewhere, which includes failing to clearly state they are not affiliated with the original lender, using information from consumers who have opted out of prescreened offers, or changing loan rates and terms to the consumer's detriment. The bill requires that initial solicitations must comply with state and federal laws regarding prescreened offers and mandates that financial institutions make a firm credit offer. Any violation of these provisions is considered an unlawful practice under existing consumer protection statutes, potentially subjecting the financial institution to legal penalties. The primary goal is to protect consumers from misleading marketing tactics and ensure transparency in loan solicitation practices.
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Commerce (S)
Last Action
Withdrawn. S.J. 746. (on 04/09/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF587 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF587.html |
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