twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Settlement Reached Over Sale of Distressed Borrower Data

Pre-screened lists resold to firms generating leads for modifications

March 15, 2013

By Mortgage Daily staff


One of the three major credit bureaus has agreed to a settlement over charges it sold data on borrowers who were past due on their home loans. Some of the data was used to generate leads for loan modifications.

Section 604 of the Fair Credit Reporting Act, 15 U.S.C. § 1681b, prohibits consumer reporting agencies from furnishing consumer reports to anybody other than those they have reason to believe have a specified "permissible purpose."

In the case of pre-screened lists, the only permissible purpose is to make a "firm offer of credit or insurance." The bureaus are required to make a reasonable effort to verify the identity of each new prospective user of consumer report information and how the reports will be used before providing the reports.

But Equifax Information Services LLC sold pre-screened lists from 2008 until 2010 that included information on millions of consumers to Direct Lending Source Inc. and affiliates Bailey & Associates Advertising Inc. and Virtual Lending Source LLC, according to the Federal Trade Commission.

The lists reportedly included credit scores as well as information about whether the borrowers were 30, 60 or 90 days delinquent on their mortgages.

"In many instances, Direct Lending did not have a permissible purpose to obtain consumer reports under the FCRA but rather, Direct Lending used and sold these lists for the purpose of marketing products and services to consumers in financial distress," the FTC said.

Direct Lending allegedly sold the list to marketers that were generating leads for loan modifications, debt relief, and foreclosure relief services.

The FTC claims that Equifax did not maintain reasonable procedures to limit the furnishing of the pre-screened lists sold to Direct Lending.

Equifax failed to fully and quickly investigate when, on certain occasions, it learned that Direct Lending was violating Equifax's internal policies relating to pre-screening, the FTC aid in a complaint. In addition, Equifax allegedly knew, or should have known, that on multiple occasions Direct Lending resold the pre-screened lists without identifying the end user to Equifax.

Equifax is also accused of violating the Federal Trade Commission Act.

A $392,803 settlement with Equifax was approved by the FTC, according to an announcement Friday. The amount represents all of Equifax's gross revenues from the list sales.

The order prohibits Equifax from making similar sales again without taking the steps needed to determine whether the list buyers meet the FCRA requirements. The company is also prohibited from selling prescreened lists in connection with offers for debt relief products or services and mortgage assistance relief products and services when advance fees are charged.

next story

back to current headlines


Credit News | Bankruptcy Statistics | Credit Score Statistics
Credit scores, bureaus & technology. Bankruptcty activity. Credit-related lawsuits, announcements and coverage of F a i r Isaac, E q u i f a x, E x p e r i a n, F I C O, V a n t a g e Score & T r a n s Union.


Loan Modification News
Loan modification activity, reports and legislation.



Mortgage Leads | Lead Directory
Loan leads for originators, brokers and loan officers. News about lead companies that provide exclusive refinance leads. Stories about mortgage lead generation techniques.


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders