SF 587: Relating to solicitation by a financial institution using prescreened trigger lead information from a consumer report

What it does

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.

Senate subcommittee · named February 18, 2025

• Sen. Carrie Koelker (R) · carrie.koelker@legis.iowa.gov
• Sen. Matt Blake (D) · matt.blake@legis.iowa.gov
• Sen. Annette Sweeney (R) · annette.sweeney@legis.iowa.gov

Lobbying · 9 for, 0 against

For: AARP Iowa; Farm Credit Service of America; Greater Des Moines Habitat for Humanity; Habitat for Humanity of Iowa; Home Builders Association of Iowa; Iowa Association of Realtors; Iowa Bankers Association; Iowa Credit Union League; Iowa Mortgage Association

In plain words

1. February 18, 2025Filed in the Senate and sent to the Commerce committee · as SSB 1145
2. February 18, 2025Senate subcommittee named: Koelker, Blake and Sweeney · as SSB 1145
3. March 4, 2025Subcommittee recommended passing it with changes · as SSB 1145
4. March 6, 2025Approved by the Senate committee, and given a new number: SF 587 · as SSB 1145
5. March 10, 2025Filed in the Senate
6. March 10, 2025Approved by the Senate committee
7. April 9, 2025Withdrawn