Read the full stored bill text
Senate
File
587
-
Introduced
SENATE
FILE
587
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
1145)
(COMPANION
TO
HF
857
BY
COMMITTEE
ON
COMMERCE)
A
BILL
FOR
An
Act
relating
to
solicitation
by
a
financial
institution
1
using
prescreened
trigger
lead
information
from
a
consumer
2
report.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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1681SV
(2)
91
nls/ko
S.F.
587
Section
1.
NEW
SECTION
.
525.1
Financial
institutions
——
1
unfair
practices.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Consumer
report”
means
the
same
as
defined
in
the
5
federal
Fair
Credit
Reporting
Act,
15
U.S.C.
§1681a.
6
b.
“Financial
institution”
means
the
same
as
defined
in
7
section
527.2,
and
includes
a
mortgage
broker
licensed
under
8
chapter
535B,
a
lender
of
mortgage
loans
or
consumer
loans,
and
9
any
other
person
that
engages
in
the
business
of
lending
money
10
in
the
state.
11
c.
(1)
“Mortgage
trigger
lead”
means
a
consumer
report
12
obtained
pursuant
to
the
federal
Fair
Credit
Reporting
Act,
13
15
U.S.C.
§1681b,
where
the
issuance
of
the
consumer
report
14
is
triggered
by
an
inquiry
made
with
a
consumer
reporting
15
agency
in
response
to
an
application
for
credit
secured
by
real
16
property.
17
(2)
“Mortgage
trigger
lead”
does
not
include
a
consumer
18
report
on
an
applicant
obtained
by
a
financial
institution
19
with
which
the
applicant
has
initially
applied
for
credit,
or
20
a
financial
institution
that
holds
or
services
an
existing
21
extension
of
credit
of
the
applicant
who
is
the
subject
of
the
22
consumer
report.
23
2.
A
financial
institution
shall
not
use
an
unfair
or
24
deceptive
practice
when
using
prescreened
mortgage
trigger
25
lead
information
derived
from
a
consumer
report
to
solicit
a
26
consumer
who
has
applied
for
a
loan
with
a
different
financial
27
institution.
A
financial
institution
shall
be
deemed
to
have
28
engaged
in
an
unfair
or
deceptive
practice
if
the
financial
29
institution
does
any
of
the
following:
30
a.
In
an
initial
phase
of
a
solicitation
from
a
lender
31
or
loan
broker,
the
financial
institution
fails
to
clearly
32
and
conspicuously
state
that
the
financial
institution
is
33
not
affiliated
with
the
financial
institution
with
which
the
34
consumer
initially
applied.
35
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587
b.
In
an
initial
solicitation,
the
financial
institution
1
fails
to
conform
to
state
and
federal
law
relating
to
2
prescreened
solicitations
using
consumer
reports,
including
but
3
not
limited
to
the
requirement
to
make
a
firm
offer
of
credit
4
to
the
consumer.
5
c.
The
financial
institution
uses
information
regarding
a
6
consumer
who
has
opted
out
of
prescreened
offers
of
credit
or
7
who
has
placed
the
consumer’s
contact
information
on
a
federal
8
do-not-call
registry.
9
d.
The
financial
institution
solicits
a
consumer
with
an
10
offer
of
certain
rates,
terms,
or
costs,
but
subsequently
11
changes
the
rates,
terms,
or
costs
to
the
detriment
of
the
12
consumer.
13
3.
A
violation
of
this
section
shall
constitute
an
unlawful
14
practice
under
section
714.16.
15
Sec.
2.
Section
714.16,
subsection
2,
Code
2025,
is
amended
16
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
r.
It
shall
be
an
unlawful
practice
for
a
18
financial
institution
to
violate
section
525.1.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
solicitation
by
a
financial
institution
23
using
prescreened
trigger
lead
information
from
a
consumer
24
report.
25
Under
the
bill,
a
financial
institution
shall
not
use
an
26
unfair
or
deceptive
practice
when
using
prescreened
mortgage
27
trigger
lead
information
derived
from
a
consumer
report
28
to
solicit
a
consumer
who
has
applied
for
a
loan
with
a
29
different
financial
institution.
“Consumer
report”,
“financial
30
institution”,
and
“mortgage
trigger
lead”
are
defined
in
the
31
bill.
32
A
financial
institution
is
engaged
in
an
unfair
or
deceptive
33
practice
when
in
an
initial
phase
of
a
solicitation
from
a
34
lender
or
loan
broker,
the
financial
institution
fails
to
35
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3
S.F.
587
clearly
and
conspicuously
state
that
the
financial
institution
1
is
not
affiliated
with
the
financial
institution
with
2
which
the
consumer
initially
applied;
fails
to
conform
to
3
state
and
federal
law
relating
to
prescreened
solicitations
4
using
consumer
reports,
including
but
not
limited
to
the
5
requirement
to
make
a
firm
offer
of
credit
to
the
consumer;
6
uses
information
regarding
a
consumer
who
has
opted
out
of
7
prescreened
offers
of
credit
or
who
has
placed
the
consumer’s
8
contact
information
on
a
federal
do-not-call
registry;
or
9
solicits
a
consumer
with
an
offer
of
certain
rates,
terms,
or
10
costs,
but
subsequently
changes
the
rates,
terms,
or
costs
to
11
the
detriment
of
the
consumer.
12
A
financial
institution
that
violates
the
bill
is
engaged
in
13
an
unlawful
practice
under
Code
section
714.16.
14
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