The Consumer Financial Protection Bureau (CFPB) is scrutinizing trigger leads — a mortgage industry term for when a homeowner’s personal information is sold to a third party after they inquire about a refinancing — and the potential risks they pose to consumers.

The CFPB is concerned that trigger leads could be used to target homeowners with unsolicited offers for products or services that they may not need, which could ultimately lead to them paying more for their mortgage.

The Children’s Hospital Los Angeles (CHLA) wrote a letter to the CFPB in support of a bill from Rep. Katie Porter that would limit the use of trigger leads.

The CHLA suggested that the bill should be revised to exempt businesses that have a legitimate interest in obtaining a consumer’s information, such as credit reporting agencies, from the prohibitions on trigger leads.

The CFPB is currently accepting comments on the issue.

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