An Act promoting consumer choice regarding the use of credit trigger leads

194th Legislature (2025-2026) Introduced by Mike Day

Bill H 1122 empowers consumers by requiring consent for sharing loan application info, ensuring transparency and control over personal financial data.

Accompanied a study order, see H5213

Purpose and Intent

Bill H 1122 aims to enhance consumer protection by regulating the use of credit trigger leads—information about loan applications that is sold to third parties by consumer reporting agencies. The bill seeks to ensure that consumers have control over their personal financial information and can make informed choices regarding its use.

Key Provisions

The bill proposes several amendments to Chapter 93 of the General Laws of Massachusetts, specifically focusing on consumer reporting agencies and financial lending institutions:

Consent Requirement:

Consumer reporting agencies are prohibited from selling or making available any information related to a consumer's loan application to third parties unless the consumer has explicitly consented to this sharing.

Notification Obligations:

Financial lending institutions must inform consumers of their right to opt into any service that involves sharing their loan application information with third parties. This notification must be clear and conspicuous.

Disclosure Format:

The written notice provided to consumers must be in a font size no smaller than ten-point type and must clearly outline the consumer's rights regarding the sharing of their loan application information.

Opt-In Process:

Consumers can opt into the sharing of their loan application information by providing consent directly on the loan application.

Compensation for Non-Compliance:

The bill includes provisions for consumers to seek compensation if they suffer damages due to a financial institution's negligent or intentional failure to comply with the credit reporting act.

Affected Parties

Consumers: The primary beneficiaries of this bill are consumers who will gain more control over their personal financial information and the ability to make informed decisions regarding its use.

Consumer Reporting Agencies: These agencies will face new restrictions on how they can handle and share consumer information.

Financial Lending Institutions: Banks, credit unions, and mortgage lenders will need to implement new notification and consent processes to comply with the bill.

Procedural Aspects

Introduced: February 27, 2025

Current Status: The bill is scheduled for a hearing on November 18, 2025, from 10:30 AM to 1:00 PM, with both in-person and virtual participation options available.

Legislative Actions: The bill was referred to the Financial Services Committee and has received concurrence from the Senate.

Conclusion

Bill H 1122 represents a significant step towards empowering consumers in Massachusetts by regulating the use of credit trigger leads and ensuring that their financial information is handled with greater transparency and consent. If enacted, it will require financial institutions to adopt more consumer-friendly practices regarding the sharing of loan application information.

Bill