Beware of Misleading Mortgage Offers: What You Need to Know
If you've recently purchased or refinanced a home, you might receive letters or emails that seem like they're from your bank or mortgage lender. Often, these communications look official, mentioning your loan details and using urgent or important-sounding language. But be cautious—many of these offers aren't from your actual lender at all. Here are some useful tips from The Peoples Bank on how to spot and stop misleading mortgage offers.
Why Are You Getting These Offers?
When you apply for a mortgage, your credit inquiry becomes visible to credit bureaus. Unfortunately, some companies will then proceed to buy this information and send out solicitations. These offers can be confusing because they intentionally mimic the style and wording used by legitimate banks or lenders.
How Can You Spot These Misleading Offers?
- They might say things like "Urgent Response Required" or "Immediate Action Needed."
- They could include phrases like "Final Notice" or "Loan Information Update," suggesting it's critical.
- Sometimes, they use logos or company names similar to your lender's to create confusion.
- Always check the small print. Usually, there is a disclaimer stating they're "not affiliated with your lender."
Take this letter, as an example. Notice the use of “time sensitive” to pressure individuals to take action. While the letter doesn’t use any company branding, it does list our bank as “Peoples Bank” rather than “The Peoples Bank.”
What Should You Do If You Get One?
- Don't respond immediately – Take your time and read carefully.
- Do not provide personal or financial details – Unless you're absolutely certain whom you're dealing with.
- Contact your bank directly – In any situation, if you’re ever unsure or even if you believe a message to be true, this should be your go-to course of action. Your lender can always confirm whether a message is legitimate or not.
How Can You Stop These Offers?
You have the right to opt out of these solicitations by:
- Visiting OptOutPrescreen.com – OptOutPrescreen.com is the official website of the consumer credit reporting industry that allows users to opt-in or opt-out of firm offers for credit or insurance. It is the only website officially authorized by Equifax, Experian, Innovis and TransUnion under the Fair Credit Reporting Act (FCRA) for the purpose of opt-ins and opt-outs.
- Calling 1-888-5-OPT-OUT (1-888-567-8688) – 1-888-567-8688 is OptOutPrescreen.com’s dedicated toll free phoneline. You can choose to opt-out for five years or permanently.
Opting out reduces unsolicited credit and insurance offers, making your mailbox safer and less cluttered. When you call or visit the website, you’ll be asked for your personal information, including your name, address, Social Security number and date of birth. This information is required and is completely confidential, it will only be used to process your request to opt-out and these services are official and reputable. Requests are processed within five days, but it may take a few weeks before you stop receiving opt-in offers, since some companies may have obtained your information before your opt-out request is processed.
Please note that opt-out requests will only stop prescreened offers based on lists used by the major credit bureaus, you may potentially keep receiving offers from other sources.
Remember: Your real lender will never pressure you for immediate action through confusing or alarming mailings. When in doubt, always reach out to your lender directly. If you receive any form of time-sensitive message from The Peoples Bank, contact us first and we’ll sort everything out.
We hope that this information is of assistance to you and, as mentioned, always contact us at The Peoples Bank with any questions. Stay informed, stay safe, and protect your financial information.