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Are you being exploited by the Credit Bureaus?

While looking for a bigger piece of the pie, some mortgage companies are paying premium prices to research and  find out who’s recently come into the market looking for loans for homes and other big-ticket items.  What even burns me more is these credit bureaus are not only giving this information away to mortgage companies by indicating when someone new applies for a real estate loan, BUT they are selling this information to the highest bidder! There isn’t any privacy anymore it appears. Maybe you Are you being exploited by the Credit Bureaus?

The information these credit bureaus sell about YOU is your name, addresses, phone numbers, mortgage histories, and even your credit score (FICO).  Granted some of this information is public knowledge, however, all of it isn’t. Once the mortgage companies have this information, which they pay between $25 and $100 to the credit bureaus, they immediately start calling YOU for your business. In the business it’s called dialing for dollars.

Why doesn’t are government do anything about this? Where are the consumer protective agencies?  As usual, Washington and your state capitals are asleep at the wheel.  Unfortunately, there aren’t any consumer protection laws now on the book for this insane business practices by credit bureaus and mortgage companies. These leads from the applications to the credit bureaus are  sold to the mortgage companies. You as the consumer/borrower are getting yet another tainted look at the financial profession. Over the years you have come to know and trust more forthright business practices, which they seem to now abandon.

There is an axiom that goes something like this; “you get what you pay for” and this may be the truth here too.  For example, if you think you’re getting an unbelievable low-interest rate on your new loan then check the terms conditions of your loan, because your costs up front will be above normal costs.  The devil is in the details. As difficult as it may be read everything mortgage companies give to you on paper. In the long run you will glad you did and it WILL save you time and money.

There is a way for the consumer to protect themselves.  Go to http://www.optoutprescreen.com to opt-out of this “scam” from taking advantage of you.  All you need to do is opt-out and you not experience these unwanted solicitations. This I think, is the easiest way to nip this trend in the bud. Otherwise for every application or borrower’s form you may fill out for a credit bureau will end up in the hands of some unscrupulous mortgage company.

Cliff Keith of Today Sotheby’s International Realty says:  “At this time when you are about to embark on the biggest purchase of your life please be sure to hire someone who has your best interest at heart.  Make sure you are a smart consumer and protect yourself against those people who have no scruples.”

If you would like more information on other real estate matter you can go read my blog at https://www.sfbayhomes.com. While you there you can also get a list of homes now for sale in the price range you are looked by filling in your criteria in the box to the right entitled “Quick Search”

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