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Credit Card Act Pushes For Truthful Credit Report Services

By Faye Mergel
Published: Saturday, May 29th, 2010

CULTRF-00016006-001The Federal Trade Commission, through its Free Credit Report Rule, advises the credit bureaus Experian, TransUnion and Equifax to avoid advertising other credit report companies aside from annual credit report. This stems from the prior complaints that the FTC has been receiving. Majority of the complaints were about credit report services which were offered to them for free. After the consumers have signed up for the service, they are told a month later that they failed to cancel the subscription before the week-long free trial service expired. They are being charged from $15 to $35 for the service.

The CARD Act of 2009 also compels companies to disclose if their services are not really given for free. This is common practice for enterprising companies to earn money. Consumers unanimously say that this is almost synonymous to consumer fraud as they were giving out false advertisements. And the FTC responded to this by imposing the new rules about credit report services.

To date, more legislation about false credit advertising are waiting to be passed in order to fully protect the credit consumers from for-profit credit report providers.

Annually, approximately 23% of the total population of borrower is misled into believing free credit report ads posted in the internet. Many of them thought that the free credit report and credit monitoring are the ones commissioned by the government to provide annual credit reports. But, in fact, these are just few of the companies who trick consumers into paying for services that they could otherwise get for free.

And instead of pointing the consumers to the government accredited website for free annual reports, they are instead being preyed upon by businesses who want to take advantage of people concerned with their credit standing.

With the right instruction, consumers who want to monitor their credit standing may do so for free. All they have to do is to file a request at annualcreditreport.com and wait for your report to be mailed to your home. Each consumer is entitled to one free report annually from each of the three credit bureaus. The people have the option on whether they want to receive the three reports all at once or they want to receive one every three months.

With the steps that the FTC is making, many consumers are hoping that the credit reporting companies will be more considerate and will abolish the misleading advertisement tactics in order to gain profit.

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