In September of 2025, President Trump signed the Homebuyers Privacy Protection Act (HPPA) into law. A key provision in the federal legislation amends the Fair Credit Reporting Act (FCRA). Along with other things, the bill prohibits credit reporting agencies from providing a consumer’s credit report to a third party in connection with a residential mortgage transaction unless that specific consumer “opts in” to allow the agency to do so. Our credit report error lawyer discusses the law, explains what it means for the FCRA, and highlights key things that consumers should know about challenging an error on their credit report. 

An Overview of the Homebuyers Privacy Protection Act (HPPA)

The Homebuyers Privacy Protection Act (HPPA) was enacted on September 5, 2025. It amends the Fair Credit Reporting Act (FCRA) to address the longstanding issue of so-called “trigger leads” in relation to residential mortgages. Trigger leads are generated when a consumer applies for a mortgage, and a credit reporting agency (usually all three) records the inquiry. What is the issue? Prior to this law, credit reporting agencies could sell this inquiry information to competing lenders and brokers who would then solicit the consumer. The HPPA was designed to curb this practice. Many people view it as a serious invasion of consumer privacy. 

The statute creates a new limitation on when a credit reporting agency may furnish a consumer report in connection with a residential mortgage inquiry. As amended by the HPPA, the FCRA now prohibits CRAs from distributing these reports unless specific conditions are satisfied. Here is an overview of the requirements of the new federal law: 

• The disclosure must be tied to a “firm offer of credit or insurance.”
• The party receiving the report must fall into a narrowly defined set of categories, such as already having an existing relationship with the entity in question because that entity is the originator of the mortgage application, the current servicer of the mortgage loan, or a depository institution or credit union holding an active account for the consumer. 

Note: Alternatively, the information may be furnished if the consumer has expressly authorized it or affirmatively opted in to receive such offers from third parties. 

The Problem the HPPA is Designed to Address (Trigger Leads)

When you apply for a mortgage, the credit reporting agencies note your inquiry. In the past, they could take that information and sell it to other lenders or brokers. The practice is known as generating “trigger leads.” As soon as you start looking for a home loan, your personal details could be shared widely, and you might be bombarded with calls, texts, or mail from unfamiliar companies. 

Many borrowers found this confusing and even predatory, especially since they had never agreed to these contracts. Further, there were plenty of companies soliciting consumers with bad or even outright fraudulent offers. The Homebuyers Privacy Protection Act (HPPA) was created to fix this problem. Here are some specific issues consumers faced without HPPA protections: 

• Unwanted Solicitations: Without restrictions on trigger leads, many homebuyers received dozens of calls, texts, and emails within hours of applying for a mortgage. For some people, the flood of solicitations was downright ridiculous. That can create some real stress at a time when families were already navigating the complicated loan process. 
• Confusion About Legitimate Offers: Consumers often had trouble distinguishing between their chosen lender and aggressive solicitors who purchased their data. Scammers and predatory lenders used the same information to pose as legitimate institutions. The confusion risked steering borrowers into unfavorable or even fraudulent agreements.
• Genuine Privacy Concerns: Applicants never gave explicit consent for their inquiry data to be sold or shared. Many felt their sensitive financial information was being exploited for profit. That matters for consumer protections. It eroded trust in the mortgage process and in the agencies responsible for safeguarding personal data.
• Higher Risk of Predatory Lending: Finally, trigger leads opened the door to lenders who targeted vulnerable consumers with high-cost or misleading loan products. Borrowers under time pressure sometimes accepted these offers without a full understanding. The lack of clear protections left consumers vulnerable to abusive lending practices.

The Bottom Line: The law gives you more control over who can access your information, so you are not overwhelmed with unwanted solicitations when you are trying to buy a home.

The Timeline for the New Law (180 Days Until it Takes Effect)

The law will not take full effect until 180 days have passed. In other words, HPPA will take effect early in 2026. At that point, CRAs, lenders, and mortgage brokers must adjust their practices to ensure conformity with the new statutory requirements. Because the HPPA amends the FCRA, enforcement mechanisms remain the same: the Consumer Financial Protection Bureau (CFPB) retains primary regulatory oversight. However, consumers may pursue private remedies under the FCRA’s civil liability provisions as well. 

The Law Also Requires the Government to Study the Issue More Comprehensively

Another notable provision of the HPPA is that it directs the Government Accountability Office (GAO) to conduct a formal study on the use of “trigger leads” in digital communications. The legislative history indicates that the lawmakers are especially interested in triggering leaders through text messages. The study must evaluate the benefits and risks of these solicitations and deliver a report to Congress within one year of the law’s enactment. It is significant because Congress may use the findings to expand restrictions beyond mortgage transactions. Alternatively, lawmakers may opt to impose additional protections on electronic marketing practices in the future. It is worth watching as the FCRA could potentially be expanded in other ways. 

How Specifically the HPPA Amended the Fair Credit Reporting Act (FCRA)

The Homebuyers Privacy Protection Act (HPPA) amended the Fair Credit Reporting Act (FCRA) by narrowing the permissible purposes under which consumer reporting agencies may furnish consumer reports related to residential mortgage inquiries. Specifically, the HPPA prohibits the sale or distribution of “trigger leads” unless the report is connected to a firm offer of credit or insurance and the recipient qualifies as the originator, servicer, or current depository institution/credit union of the consumer, or has obtained the consumer’s express authorization. 

What Does it Mean that the FCRA has a Private Right of Action?

One of the key points to know about the HPPA, being an amendment to the FCRA, is that the FCRA has a private right of action. It is a very important tool for consumers. The FCRA allows individual consumers to file lawsuits directly against violators of the law. They do not have to merely rely on government enforcement. In the context of the Homebuyers Privacy Protection Act (HPPA), this is significant because consumers can sue credit reporting agencies or lenders that improperly use or sell trigger leads in violation of the new restrictions. The remedies may include actual damages, statutory damages, and attorneys’ fees. For willful violations, punitive damages may also be available, as that is a viable FCRA remedy in some cases. 

Steps to Take If Your Rights are Violated Under the FCRA’s New HPPA Provision

Do you believe that your rights were violated under the FCRA’s new HPPA provision? You will have legal options available once the law takes full effect next year. There is no retroactive clause in the statute. That means that a credit reporting agency sharing certain information regarding your interest in a mortgage is not necessarily a violation yet. However, it is important for consumers to know what to do to protect their rights and their interests once the law takes full effect: 

• Document the Violation of the Homebuyers Privacy Protection Act (HPPA): Documentation is the key to any legal claim. FCRA cases are no exception to the rule. With that in mind, the first step to dealing with a suspected HPPA violation is to keep a clear record of what happened. If you receive calls, texts, or solicitations after applying for a mortgage, note the dates, times, and the names of the companies involved. Along with other things, you should save emails, phone logs, or mailers that show your information was shared without authorization. Comprehensive documentation helps to form the foundation of a claim. 
• Exercise Your Right to Get a Copy of Your Credit Report Disclosure: The FCRA provides consumers with a wide range of different rights, including the right to get certain disclosures related to their credit report. More specifically, the federal law gives you the right to request information about who has accessed your credit report. Submitting this request allows you to verify whether a credit reporting bureau released your data to third parties. If you see entries from companies with which you have no relationship, that may indicate an HPPA violation. It is a step that helps establish the source of the improper disclosure.
• File a Written Dispute With the Credit Reporting Agency/Agencies: Once you identify a potential violation, send a written dispute to the credit report agency that released your information. It could be Experian, Equifax, TransUnion, any combination, or even all of these entities. You should be specific about the unauthorized disclosures and attach copies of any evidence you gathered. Under the FCRA, credit reporting agencies must investigate disputes and correct errors or unlawful disclosures. A timely, well-documented dispute also strengthens your case if litigation becomes necessary at some point in the future.
• Consult with an Experienced Consumer Protection Attorney: The FCRA includes a private right of action, which means you may file a lawsuit if your rights under the HPPA are violated. At the same time, the FCRA can be a complicated law for consumers to navigate. You do not have to figure out everything alone. An experienced attorney can assess the strength of your claim, advise you on litigation strategy, and ensure that deadlines are met. No matter your situation, an FCRA lawyer will help you determine the best course of action.
• Consider All Available Legal Remedies Under the FCRA: If many consumers have been harmed by similar practices, your claim may become part of a class action. Class actions are particularly effective in FCRA cases, as they allow consumers to pool resources and challenge systemic violations. You should consider all available remedies under the law. The FCRA provides a wide range of potential remedies, including actual damages, statutory damages, punitive damages for willful violations, and the recovery of attorneys’ fees.

Note: HPPA does not take effect until early 2026. That is 180 days after its September 5, 2025, enactment. The law will take full effect on March 4th, 2026. Until that compliance date, current FCRA rules still apply. Consumers should remain aware of the timeline before pursuing claims under the new law.

How FCRA Attorney Richard H. Kim Can Help

An error on your credit report can cause you serious financial harm. You have the right to challenge it and to take action to hold the responsible parties (or parties) accountable. That includes debt lenders, debt collection agencies, and/or the major credit reporting bureaus. Richard H. Kim is a consumer protection lawyer with the skills and experience to take on the full range of Fair Credit Reporting Act (FCRA) cases. With a proactive approach and a proven record of success for clients, Attorney Kim will invest the time, resources, and attention to detail to protect your financial interests. You do not have to let an error on your credit report persist. You can take legal action to get it corrected and to recover financial compensation for the damages that you suffered.

Contact Our Credit Report Error Attorney

At The Kim Law Firm, LLC, our credit report error lawyer has the knowledge, skills, and professional expertise that consumers can trust. If you suffered tangible financial harm due to an error on your credit report, we are here to help you get it corrected and get the full available financial compensation. Call us today or contact us online to arrange your confidential initial case review. We handle credit report error cases under the FCRA nationwide.