Senate Study Bill 1145 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BOUSSELOT) 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 TLSB 1681XC (1) 91 nls/ko

S.F. _____ 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, 15 13 U.S.C. §1681b, where the issuance of the consumer report is 14 triggered by an inquiry made with a consumer reporting agency 15 in response to an application for credit. 16 (2) “Mortgage trigger lead” does not include a consumer 17 report on an applicant obtained by a financial institution 18 with which the applicant has initially applied for credit, or 19 a financial institution that holds or services an existing 20 extension of credit of the applicant who is the subject of the 21 consumer report. 22 2. A financial institution shall not use an unfair or 23 deceptive practice when using prescreened mortgage trigger 24 lead information derived from a consumer report to solicit a 25 consumer who has applied for a loan with a different financial 26 institution. A financial institution shall be deemed to have 27 engaged in an unfair or deceptive practice if the financial 28 institution does any of the following: 29 a. In an initial phase of a solicitation from a lender 30 or loan broker, the financial institution fails to clearly 31 and conspicuously state that the financial institution is 32 not affiliated with the financial institution with which the 33 consumer initially applied. 34 b. In an initial solicitation, the financial institution 35 -1- LSB 1681XC (1) 91 nls/ko 1/ 3

S.F. _____ fails to conform to state and federal law relating to 1 prescreened solicitations using consumer reports, including but 2 not limited to the requirement to make a firm offer of credit 3 to the consumer. 4 c. The financial institution uses information regarding a 5 consumer who has opted out of prescreened offers of credit or 6 who has placed the consumer’s contact information on a federal 7 do-not-call registry. 8 d. The financial institution solicits a consumer with an 9 offer of certain rates, terms, or costs, but subsequently 10 changes the rates, terms, or costs to the detriment of the 11 consumer. 12 3. A violation of this section shall constitute an unlawful 13 practice under section 714.16. 14 Sec. 2. Section 714.16, subsection 2, Code 2025, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . r. It shall be an unlawful practice for a 17 financial institution to violate section 525.1. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to solicitation by a financial institution 22 using prescreened trigger lead information from a consumer 23 report. 24 Under the bill, a financial institution shall not use an 25 unfair or deceptive practice when using prescreened mortgage 26 trigger lead information derived from a consumer report 27 to solicit a consumer who has applied for a loan with a 28 different financial institution. “Consumer report”, “financial 29 institution”, and “mortgage trigger lead” are defined in the 30 bill. 31 A financial institution is engaged in an unfair or deceptive 32 practice when in an initial phase of a solicitation from a 33 lender or loan broker, the financial institution fails to 34 clearly and conspicuously state that the financial institution 35 -2- LSB 1681XC (1) 91 nls/ko 2/ 3

S.F. _____ is not affiliated with the financial institution with 1 which the consumer initially applied; fails to conform to 2 state and federal law relating to prescreened solicitations 3 using consumer reports, including but not limited to the 4 requirement to make a firm offer of credit to the consumer; 5 uses information regarding a consumer who has opted out of 6 prescreened offers of credit or who has placed the consumer’s 7 contact information on a federal do-not-call registry; or 8 solicits a consumer with an offer of certain rates, terms, or 9 costs, but subsequently changes the rates, terms, or costs to 10 the detriment of the consumer. 11 A financial institution that violates the bill is engaged in 12 an unlawful practice under Code section 714.16. 13 -3- LSB 1681XC (1) 91 nls/ko 3/ 3