Written By: Edward Jamison, Esq., a credit attorney and founder of Jamison Law Group PC in Los Angeles. His most recent product is a business-in-a-box system for opening your own Credit Restoration business in-house.
More info can be found at www.LoanOfficerTraining.com. Click Here for a video introduction.
This is definitely not an article comparing the credit bureaus with the Wizard of Oz, but some of you will agree that this story has three witches.
Are the big three credit bureaus guilty of violating anti-trust laws by selling trigger leads? I also briefly mention some of the other practices of the big three that may or may not violate these laws but the main focus of the article deals with trigger leads.
For those of you who don’t know, a trigger lead is a lead that the credit bureaus sell to other mortgage companies. They obtain the leads every time you run credit on a borrower since you are using their service to pull the credit report. The credit bureaus make your borrowers information available 24 hours after you pull the report. The mortgage companies that purchase these leads can get access to your borrower’s information the very next day.
These are HOT leads because every lead is a person getting a mortgage inquiry, talk about targeted!
In addition to the federal government, most states have antitrust laws too. There are three major federal antitrust laws: the Sherman Antitrust Act, the Clayton Act, and the Federal Trade Commission Act. I am not going to discuss whether the big three violate any state laws in this article — but you can determine that for yourself!
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