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Bill

HB 240

Mortgage lenders and brokers; prohibit unfair or deceptive practices in consumer transactions related to mortgage trigger leads

2025-2026 Regular Session Introduced by Demetrius Douglas and 5 co-sponsors

Georgia bans mortgage lenders from unfairly using consumer trigger leads without consent, enforcing penalties through consumer protection law violations.

Effective Date
#bankingandfinance #commerceandtrade
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Bill Summary · HB 240

Legislative bill overview

HB 240 prohibits mortgage lenders and brokers in Georgia from engaging in unfair or deceptive practices when purchasing, selling, or using "mortgage trigger leads"—consumer information obtained when homeowners refinance, purchase property, or take out home equity loans. The bill establishes that using this data without proper consumer consent or disclosure constitutes an unfair and deceptive trade practice under Georgia's consumer protection laws.

Why is this important

Mortgage trigger leads are high-value consumer data that lenders sell to competitors, creating a secondary market where homeowners' financial information circulates without their knowledge. This practice exposes consumers to unsolicited solicitations and potential predatory lending schemes. By classifying deceptive trigger lead practices as unfair trade violations, the bill gives Georgia's Attorney General enforcement authority and allows consumers to pursue legal remedies against bad actors.

Potential points of contention

  • Industry opposition: Mortgage lenders and data brokers may argue the restrictions limit legitimate business practices and data sharing that fuels market competition
  • Vague definitions: The bill relies on interpretations of "unfair or deceptive" conduct, which could create enforcement uncertainty and inconsistent application
  • Limited scope: The law applies only to trigger leads; other forms of financial data sales and consumer profiling remain unregulated under this statute

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

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