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SF 587

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

2025-2026 Regular Session

Regulates prescreened trigger-lead solicitations by financial institutions, requires clear disclosures and firm offer of credit, bans opt-outs and Do-Not-Call use, with penalties.

Withdrawn.
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Bill Summary · SF 587

Summary of SF 587 (Introduced March 10, 2025)

SF 587 is a bill that would regulate the use of prescreened trigger lead information from consumer reports in solicitations by financial institutions. The bill has been withdrawn, with related actions moving through HF 857 before withdrawal.

Purpose and intent

  • To govern solicitations by financial institutions that use prescreened trigger lead information derived from consumer reports.
  • To ensure disclosures and compliance with state and federal prescreening laws, including the obligation to make a firm offer of credit where required.
  • To protect consumers who opt out of prescreened offers or who are listed on the federal Do-Not-Call registry.
  • To prevent deceptive or detrimental practices in the alteration of rates, terms, or costs after an initial offer.

Key provisions (as introduced)

  • Clear and conspicuous disclosure that the financial institution is not affiliated with the institution the consumer initially applied to.
  • Requires conformity with state and federal law relating to prescreened solicitations using consumer reports, including the firm offer of credit requirement.
  • Prohibits using information about consumers who have opted out of prescreened offers or whose contact information appears on the federal Do-Not-Call registry.
  • Prohibits soliciting a consumer with an offer of certain rates, terms, or costs if those rates, terms, or costs are later changed to the consumer’s detriment.
  • Violations would constitute an unlawful practice under Code section 714.16.

Who is affected

  • Financial institutions that engage in prescreened solicitations (including banks, mortgage lenders, mortgage brokers, loan brokers, and related financial entities).
  • Consumers who receive prescreened offers, particularly those who have opted out or are on the Do-Not-Call list.

Procedural and timeline aspects

  • Introduced: March 10, 2025; placed on the calendar.
  • Committee action: Report approved (March 10, 2025).
  • Subsequent actions: Attached to HF 857 (March 20, 2025); HF 857 substituted SF 587 (April 9, 2025); SF 587 withdrawn (April 9, 2025).
  • Related status: The policy concept continued via HF 857, but the bill was withdrawn on the same day.

Context and potential impact

  • The bill would increase disclosure requirements for prescreened solicitations and tighten compliance with Do Not Call and opt-out protections.
  • It creates or reinforces penalties for unlawful practices under state law (Code section 714.16).
  • Financial institutions would face enhanced obligations around transparency of affiliation, adherence to firm offers of credit, and prohibitions on using opt-out or Do-Not-Call information.
  • Overall, it aims to curb predatory or deceptive prescreened practices in consumer lending.

Compiled from official sources — confirm details with the bill’s official record.

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