Credit Score News, Tips & Advice
Website CertifiedPrivacy Protected

FTC monitors on Free credit report websites

By Sally Maison
Published: Sunday, April 18th, 2010

AGERM-00503694-001With the new federal rules which regulate web sites that advertise and offer free credit reports, most companies nowadays have come up with a new marketing strategy.  Due to a number of complaints regarding companies that offer free credit reports which turned out to be a paid service when a customer forgets to cancel the free service, instead of a free report companies are now offer free credit scores.

There is a site that actually charges a customer a dollar and the money is said to be donated to charity.  A new regulating rule that governs the advertisements of free credit reports took effect last April 2, 2010. As a part of the rule, sites or companies that give out ‘free’ credit reports should provide a copy of the report in large fonts stating that it is absolutely free and a government-generated report but the FTC pointed out that the new regulation does not cover free credit scores but a free credit report only.

The Credit CARD Act of 2009 has given more control to the government in controlling the activities and practices of credit report sites and has provided greater encouragement for consumers to be very careful and aware of the accuracy of the reports handed to them.

The move is the latest step in the government’s increased control over the advertising practices of companies that offer credit reports. The changes could further help encourage consumers to examine the accuracy of

“It’s not at all covered by the rules,” said Frank Dorman, an FTC spokesman. “It’s a completely different offering.” According to the agency, there might be a review that will be done on new advertisements which imply a free credit report offer that could mislead the public again.

Equifax, TransUnion and Experian; the three major credit bureaus were able to convince the FTC to allow advertising the sale of credit scores on government-approved free web sites and so far had been an effective move.  There are some parties though that claims there would be a sort of deception with the new rulings but the FTC is on the move to check on the legality of the sites especially that these sites mention of free reports.

With this, experts then suggest that every consumer should closely and accurately examine the credit reports they receive since it could have a great impact on one’s credit history especially when you’re applying for a credit card, a loan or awaiting for a prospective employment.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.