Federal agency targets 'free' credit report ads
February 24, 2010 |13:16 | Gossips By : Team X
The Federal Trade Commission is cracking down on misleading ads offering free credit reports that trick people into paying for credit monitoring or other services they don't want. Under federal law, consumers are entitled to a free credit report every 12 months from each of the three nationwide credit reporting bureaus - Equifax, Experian and TransUnion. The reports can be ordered online at an official centralized site, www.annualcreditreport.com, or by calling 877-322-8228.
Some consumers have complained that they thought they were ordering their free annual report from some companies but couldn't get it without paying fees or buying other services. Starting April 1, sites advertising the free reports must disclose prominently that consumers are entitled to no-strings-attached free reports through the official site. They also must include clickable links to the official site.
The new disclosure rules will help people "avoid confusing 'free' offers, which often require consumers to spend money on credit monitoring or other products or services," the FTC said. The new disclosures don't take effect for television and radio ads until Sept. 1.
The FTC said it would monitor and evaluate the effectiveness of the new disclosures and consider changes as necessary.
People should review their credit reports to ensure accuracy and to spot identity theft.
The federal law mandating free credit reports, which took effect for Pennsylvania residents in 2005, does not cover credit scores. Credit bureaus are allowed to charge a fee if consumers want to see their credit scores.
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