FTC Cracking Down on Free Credit Reports
Beginning next month, websites that offer so-called “free credit reports” will need to add a disclosure atop the page so consumers don’t confuse them with the no-strings-attached credit reports offered from the government.
By “free credit reports,” they mean those free trial credit reports that require you to sign up for an ongoing service; they’re only “free” if you cancel within the initial trial period, which not all consumers seem to understand.
So come April 1, you’ll see the following text on websites offering the not-so-free credit reports:
“THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV. You have the right to a free credit report from AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law.”
The FTC is hoping that’ll be enough to steer customers toward the official free credit report website, though I’m sure the impostors will come up with some way to circumvent the whole thing.
The Credit Card Act of 2009, which is now finally in effect, required the FTC to issue a rule pertaining to the deceptive marketing of “free credit reports” by February 22, 2010.
Between now and April 1, you’ll see a slightly different disclosure, which reads: “Free credits reports are available under Federal law at: AnnualCreditReport.com.”
Keep in mind that the free credit report offered by the government does not include a free credit score, so that’s the big different between the two.
However, the government report includes all other relevant information, so you should be able to estimate where you stand on the credit score range.
Related Topics:
- The Free Credit Score Loophole
- Absolutely Free Credit Report with No Trial Required
- Free Credit Report vs. Credit Monitoring
- Get a Free Credit Report Without a Credit Card
- Free Credit Report
Posted Under: Credit News