Prescreened Offers: What Are They and How Your Employees Can Protect Themselves

Have you ever wondered why you receive calls and mailers telling you that you are pre-approved for a credit card, soliciting you for home improvement loans, to refinance your car, or any number of other offerings? These are all the result of what are known as prescreened offers of credit. Companies pay the credit bureaus for lists of consumers who meet their preset criteria and then market, in some cases aggressively, their services to that list.

Recently we have seen this tactic used heavily in the mortgage industry as brokers are purchasing lists of customers who have high credit scores, strong equity positions in their homes, live in hot markets, and have recently inquired with a mortgage company.

As your partner, we feel it is beneficial for both you and your employees to know not only why they may be receiving these offers but also what they can proactively do to prevent them.

Why are companies able to do this?

Prescreened offers of credit are allowed under the Fair Credit Report Act. The Federal Trade Commission’s (FTC) stance is that they are beneficial for consumers because they allow the consumer to obtain multiple offers to make sure they are receiving the best deal on credit. In practice however, they often cause the consumers to feel like they are being spammed and bombarded with unsolicited telemarketing calls. Prescreened offers can also open the door to identity theft, fraud, and predatory lending.

How can your employees protect themselves?

The first, most important step, is to make sure that they are working with a trusted provider whenever they are looking to obtain credit. Unfortunately, that alone will not protect them though as even companies who do not share or sell their information cannot prevent the credit bureaus from sharing leads.

Those who are either not actively looking to obtain credit, or who would prefer not to receive these prescreened offers, may opt out using the information below:

• Register for Do Not Call: The National Do Not Call Registry is free and can help limit telemarketing calls. Visit donotcall.gov or call 1-888-382-1222 from the phone number you wish to register. A number stays on the registry for five years, until it is disconnected, or until you take it off the registry. In can take up to 31 days for calls to stop.
• Opt out of prescreened offers: To opt out of prescreened offers, the employee can call 1-888-5-OPTOUT (1-888-567-8688) or visit optoutprescreen.com. When the employee calls or visits the website, they will be asked to provide personal information, including phone number, name, Social Security number, and date of birth. The information provided is confidential and will be used only to process the request to opt out. The request to opt out will be processed within five days, but it may take up to 60 days to stop receiving these offers.

It’s important to note that opting out of prescreened offers does not affect the employee’s ability to apply for or obtain credit. If, or when, they want to opt back in, they can use the same telephone number or website.

While taking these steps will limit the unsolicited marketing employees receive, many companies use other tools to identify marketing prospects. Even if the employee opts out of prescreened offers and puts their number on the National Do Not Call Registry, they should still expect some unsolicited offers.

If you would like to learn more, the Federal Trade Commission (FTC) has resources that can help:

• More information on prescreened offers? Read here
• Want to learn more about your credit report and when creditors can access it? Read here
• How can I stop receiving junk mail? Read here

SIRVA Mortgage, Inc. (NMLS Unique Identifier# 2240) is engaged in the business of originating residential mortgage loans. We are licensed or authorized to conduct mortgage loan origination in all 50 states plus the District of Columbia.  SIRVA Mortgage is not a depository institution and does not act as or represent itself a full service bank.  Reference to the term “mortgage banker” is a common, accepted industry term referring to companies engaged only in the business of making mortgage loans.  Various state laws and regulations and our individual license in various states refer to us as a mortgage lender, mortgage banker or mortgage broker. For our Privacy Policy and Affiliated business relationships please visit https://mortgage.sirva.com/about/about-sirva-mortgage. Call 800-531-3837 for more information. SIRVA Mortgage, Inc. is licensed by (among others): Arizona Licensed Mortgage Banker, License #BK-901430; Licensed by the  Department Corporations under the California Residential Mortgage Lending Act, Lender License #413-0944; Georgia Residential Mortgage Licensee #6221; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company, License # SL.0000368; Massachusetts Mortgage Lender, License #ML1341; Licensed by the Mississippi Department of Banking and Consumer Finance, Mississippi Licensed Mortgage Company #369/2009; Missouri Residential Mortgage Licensee; Montana Mortgage Lender License #39706, Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; New York Licensed Mortgage Banker by the N.Y. State Banking Department; Ohio Mortgage Broker License #MB.803887.000; Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; Texas Mortgage Lender, License # 44605; Licensed as a Mortgage Lender by the Virginia State Corporation Commission, license #MC-310. This is not an offer of credit or an offer to enter an interest rate lock-in agreement nor is this notice of loan approval. Main Office of SIRVA Mortgage, Inc.; 6200 Oak Tree Blvd., Ste 300, Independence, OH  44131; Telephone: 1-800-531-3837.