On April 18, Iowa enacted HF 857 (the “Act”), prohibiting financial institutions from using unfair or deceptive practices when they use prescreened mortgage trigger lead information to solicit consumers who have applied for loans with other institutions. It defines terms such as “consumer report,” “financial institution,” and “mortgage trigger lead,” and sets forth specific actions that constitute unfair or deceptive practices, which include: (i) failing to disclose affiliation status; (ii) not adhering to prescreened solicitation laws; (iii) using information from consumers who have opted out of such offers; and (iv) altering offered rates or terms to the detriment of the consumer. The Act is effective July 1.
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