Having your credit pulled is a required part of the commercial real estate (CRE) loan application process.
What’s not required — but can often happen anyway — is an uptick in offers from unsolicited creditors and lenders.
Fremont Bank never sells any aspect of your credit files to other companies nor allows access to it. However, companies other than Fremont Bank can inundate you after a commercial real estate loan application with offers that look legitimate — but aren’t from us.
Those offers can be frustrating and confusing. Since you look to us for trusted advice, we wanted to explain why those offers happen — and what you can do to stop them. The good news? There are steps you can take to protect your privacy the next time you apply for a new business property loan.
Why do unsolicited commercial loan offers happen?
After a commercial lending credit pull, credit bureaus like Equifax, Experian, or TransUnion are legally allowed to compile and sell your information to other financial institutions and lenders as a something called a “trigger lead,” since the credit pull is what triggers the bureaus to act.
The bureaus sell these leads of lists of prescreened consumers and their contact information to lenders, brokers, credit card companies, and marketing firms.
These lists are often sold to multiple parties, which multiples the number of them targeting you by calling, emailing, texting and sending mail with unsolicited offers.
Why are trigger leads legal?
The practice is permitted under the Fair Credit Reporting Act (FCRA) with the idea that it benefits consumer to have more options and promotes lender competition. Critics say the practice is too aggressive and can potentially confuse and mislead people because the solicitations can be presented as coming from or being affiliated with the original lending institution.
Unfortunately, the original lender has no say in this practice. Fremont Bank doesn’t have the ability to stop the sale of your information by the major credit bureaus once the process has been set into motion by the inquiry at the national credit bureau level.
What steps can you take to stop unsolicited offers?
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Opt out of firm offers of credit by visiting OptOutPrescreen.com
To submit your opt-out request, you’ll need to share some personal information, such as your name, Social Security number, and date of birth. That information is kept private.
Once you’ve formally opted out, it still may take several weeks before you stop receiving prescreened offers. Even though requests to opt out are processed within five days, some companies may receive your information and begin reaching out before the opt-out request has been processed.
Rest assured that removing your name from prescreened lists has no effect on your credit score, or on your ability to apply for or receive credit or insurance.
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Register with the National Do Not Call Registry at donotcall.gov
While this registry helps reduce unwanted telemarketing calls like unsolicited loan offers, it doesn’t block those who choose to ignore the registry — or scammers.
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Use call-blocking apps
Consider an app that can help filter out unwanted calls from spammers, robocalls, and telemarketers — or from specific numbers or area codes.
Other steps you can take to protect yourself
While many of these unsolicited offers are a nuisance, they are legitimate businesses. It’s essential to also keep an eye out for scammers pretending to be legitimate lenders, brokers, credit card companies, and marketing firms.
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Be cautious and protect sensitive information
Do not give private information like your Social Security number or business account information to a caller. Be wary of offers that seem too good to be true. If you have doubts, hang up and report the call to the Federal Trade Commission (FTC).
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Report any activity you think is suspicious
If you believe you’ve been targeted by a scam or fraud as part of a trigger lead or for any reason, report it to the FTC.
