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Senate panel passes bill to curb immediate resale‑triggered solicitations after credit pulls
Summary
The committee passed a consumer‑protection bill to require firms that buy and use instant credit‑pull triggers to identify themselves and respect do‑not‑call and opt‑out notices; sponsors said the practice results in predatory, instantaneous calls to consumers after they apply for credit.
Sen. Blake Johnson introduced legislation to address what witnesses described as instantaneous resale of credit‑pull data to marketers and lead generators who immediately call consumers after a loan application. Keith Little and representatives of the Mortgage Bankers Association of Arkansas described numerous complaints that consumers get many phone solicitations immediately after their credit is pulled, sometimes from callers falsely implying affiliation with the lender.
Johnson said the measure does not ban resale or the calls but requires clearer identification of the caller, conspicuous disclosure when the consumer has opted out of having credit sold, and compliance with do‑not‑call rules. Committee members pressed on enforcement and penalties; Karen Tierney of the Arkansas Securities Department noted the Fair Mortgage Lending Act provides enforcement authority, including monetary penalties up to $10,000 per violation under existing law.
Supporters framed the bill as consumer protection that preserves legitimate marketing while curbing the worst predatory practices. The committee passed the bill by voice vote.
