A bill for an act relating to solicitation by a financial institution using prescreened trigger lead information from a consumer report.(Formerly SSB 1145.)

Iowa Senate File 587 (SF587) was a legislative proposal aimed at regulating how financial institutions use certain consumer credit information for marketing purposes. Specifically, the bill sought to address the practice of using 'prescreened trigger leads,' which are generated when a consumer applies for credit, such as a mortgage. These leads are then sold to other lenders, who use the information to solicit the consumer with competing offers. SF587 intended to impose restrictions on this practice to protect consumer privacy and reduce unsolicited financial solicitations. However, the bill was withdrawn on April 9, 2025, and its provisions were incorporated into House File 857 (HF857), which was subsequently signed into law on April 18, 2025.

Supporters of the legislation, including consumer advocacy groups and privacy proponents, praised the bill for enhancing consumer privacy and reducing unwanted solicitations. They argued that restricting the use of prescreened trigger leads would protect consumers from aggressive marketing tactics and potential confusion during critical financial decisions, such as securing a mortgage. The passage of HF857 was seen as a positive step toward safeguarding personal information and promoting fair lending practices.

Opponents of the bill, particularly within the financial services industry, expressed concerns that the restrictions could limit competition and consumer choice. They argued that prescreened trigger leads allow consumers to receive multiple offers, potentially leading to better loan terms and interest rates. By limiting this practice, critics contended that the legislation might inadvertently reduce the ability of consumers to compare different financial products and make informed decisions.