Florida Consumer E-Newsletter
October 2007
Charles H. Bronson
Commissioner
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A Message from the Commissioner
Dear Friends:
Unsolicited calls, emails, and letters regarding “pre-screened” or “pre-approved” offers of credit have become an integral part of the marketing plan for many creditors/lenders, especially in the mortgage industry. Most consumers find themselves inundated with these solicitations soon after applying for a line of credit. Many even feel betrayed, wondering why this company was able to sell or share their personal information without their consent.
In essence, your recent credit application may have triggered this onslaught. The companies are able to identify potential customers for the products they offer through lists provided by one of the three consumer credit reporting agencies, and then market directly to them. Although the vast majority of consumers seem to be annoyed by this method of marketing, one must not overlook the potential benefits. Some of these offers of credit represent an opportunity that might not be available to the general public. These offers may also give consumers the ability to comparison shop, which may actually increase their buying power.
Fortunately for those who are annoyed by the practice, there is the ability to “opt-out” of receiving these offers. If you decide that you don’t want to receive prescreened offers of credit and insurance, you have two choices: opt-out of receiving them for five years, or opt-out of receiving them permanently. Call toll-free 1-888-5-OPT-OUT (567-8688) or visit www.optoutprescreen.com for details.
Sincerely,
All prescreened solicitations (including mortgage offers and pre-approved credit card offers mailed to consumers) are required by law to inform consumers that they have the right to opt-out of receiving future similar offers.
Can prescreening hurt my credit report or credit score?
No. There will be “inquiries” on your credit report showing which companies obtained your information for prescreening, but those inquiries will not have a negative effect on your credit report or credit score.
Will opting-out stop all unsolicited offers of credit and insurance?
Calling the opt-out line or visiting the website will stop the prescreened solicitations that are based on lists from the major consumer reporting companies. You may continue to get solicitations for credit and insurance based on lists from other sources. For example, opting out won’t end solicitations from local merchants, religious and charitable associations, professional and alumni associations, and companies with which you already conduct business. To stop mail from groups like these — as well as mail addressed to “occupant” or “resident” — you must contact each source directly.
What other opt-out programs should I know about?
The Direct Marketing Association (DMA), a trade association for businesses in direct, database, and interactive global marketing, maintains a Mail Preference Service (MPS) that lets you opt-out of receiving direct mail marketing from many national companies for five years. When you register with this service, your name will be put on a “delete” file and be made available to direct mail marketers. However, your registration will not stop mailings from any organizations that are not registered with the DMA’s Mail Preference Service. Because some mailings are prepared far in advance, please allow 30-90 days for your registration with MPS to become fully effective. You can register online at www.dmaconsumers.org/consumerassistance.html. Keep in mind that there is a $1 fee, payable by credit card, which verifies your registration and helps to protect their system from fraud. Please note that MPS applies only to home addresses, not business addresses.
The DMA also has an Email Preference Service (e-MPS) to help you reduce unsolicited commercial emails. To opt-out of receiving unsolicited commercial email from DMA members, visit www.dmaconsumers.org/offemaillist.html. Your online request will be effective for one year. Keep in mind that you will continue to receive mail from companies with which you do business and from charitable or commercial organizations which do not choose to use e-MPS.
For additional information, please call our consumer hotline at 1-800-HELP-FLA (435-7352) calling within Florida, 850-488-2221 outside of Florida, or en Español 1-800-FL-AYUDA (352-9832), or visit us online at www.800helpfla.com. We’ll assist you in finding answers for any consumer related questions you may have or direct you to the most suitable resource for assistance. Remember ... consumer education is the best defense against fraud and deception!
Additional Resources
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The links below are for your information only. The goal of the Division of Consumer Services is to provide additional information to consumers. The Florida Department of Agriculture and Consumer Services does not review or confirm these sites for accuracy.
OptOutPrescreen.com
OptOutPrescreen.com is a centralized service to accept and process requests from consumers to "Opt-In" or “Opt-Out” of firm offers of credit or insurance. OptOutPrescreen.com is a joint venture among Equifax Information Services, LLC, Experian Information Solutions, Inc., Innovis Data Solutions, Inc., and TransUnion, LLC (collectively the "Consumer Credit Reporting Companies").
Direct Marketing Association (DMA)
The DMA takes a proactive stance in response to consumer problems, working on behalf of DMA member companies to help consumers. The Direct Marketing Association (DMA), established in 1917, is the oldest and largest national trade association serving the direct and interactive marketing field.
Experian
Today, most companies develop a description of their ideal customers and then tailor unique sales offers to fit those customers’ needs. This approach is called target marketing.
Federal Trade Commission (FTC)
If you apply for a mortgage, your inbox, answering machine, and mailbox may fill up quickly with competing offers from other mortgage companies. It’s not that the company you applied to is selling or sharing your information. Rather, it’s that creditors – including mortgage companies – are taking advantage of a federal law that allows them to identify potential customers for the products they offer, and then market to them.
