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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
April 18, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 857, an Act relating to solicitation by a financial institution using prescreened
trigger lead information from a consumer report.
The above House File is hereby approved on this date.
Sincgrely,
olds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 FAX 515.725.3527 WWW.GOVF_RNOR.IOWA.GOV
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House File 857
AN ACT
RELATING TO SOLICITATION BY A FINANCIAL INSTITUTION USING
PRESCREENED TRIGGER LEAD INFORMATION FROM A CONSUMER REPORT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 525.1 Financial institutions —
unfair practices.
1. As used in this section, unless the context otherwise
requires:
a. " Consumer report"" means the same as defined in the
federal Fair Credit Reporting Act, 15 U.S.C. § 1681a.
b. Financial institution - means the same as defined in
section 527.2, and includes a mortgage broker licensed under
chapter 535B, a lender of mortgage loans or consumer loans, and
any other person that engages in the business of lending money
in the state.
House File 857, p. 2
C. ( 1) Mortgage trigger lead - means a consumer report
obtained pursuant to the federal Fair Credit Reporting Act,
15 U.S.C. § 1681b, where the issuance of the consumer report
is triggered by an inquiry made with a consumer reporting
agency in response to an application for credit secured by real
property.
( 2) Mortgage trigger lead - does not include a consumer
report on an applicant obtained by a financial institution
with which the applicant has initially applied for credit, or
a financial institution that holds or services an existing
extension of credit of the applicant who is the subject of the
consumer report.
2. A financial institution shall not use an unfair or
deceptive practice when using prescreened mortgage trigger
lead information derived from a consumer report to solicit a
consumer who has applied for a loan with a different financial
institution. A financial institution shall be deemed to have
engaged in an unfair or deceptive practice if the financial
institution does any of the following:
a. In an initial phase of a solicitation from a lender
or loan broker, the financial institution fails to clearly
and conspicuously state that the financial institution is
not affiliated with the financial institution with which the
consumer initially applied.
b. In an initial solicitation, the financial institution
fails to conform to state and federal law relating to
prescreened solicitations using consumer reports, including but
not limited to the requirement to make a firm offer of credit
to the consumer.
c, The financial institution uses information regarding a
consumer who has opted out of prescreened offers of credit or
who has placed the consumers contact information on a federal
do- not- call registry.
d. The financial institution solicits a consumer with an
offer of certain rates, terms, or costs, but subsequently
changes the rates, terms, or costs to the detriment of the
consumer.
3. A violation of this section shall constitute an unlawful
practice under section 714.16.
Speaker of the
House Eile 857, p. 3
Sec. 2. Section 714.16, subsection 2, Code 2025, is amended
by adding the following new paragraph:
NEW PARAGRAPH. r. It shall be an unlawful practice for a
financial institution to violate section 525.1.
House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 857, Ninety-first General Assembly.
Approved 2025
• 21 q 4/16••
MEQEAN NELSON