Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Marketer of 'free credit reports' settles FTC charges

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August 16, 2005

Marketer of 'free credit reports' settles FTC charges

"Consumerinfo.com Inc., doing business as Experian Consumer Direct, has settled Federal Trade Commission charges that it deceptively marketed "free credit reports" by not adequately disclosing that consumers automatically would be signed up for a credit report monitoring service and charged $79.95 if they didn't cancel within 30 days, in violation of federal law."

What is interesting, that Consumerinfo.com Inc. is a wholly owned subsidiary of Experian North America, which owns Experian. Experian is one of the three national credit reporting companies.

Under the settlement, Consumerinfo must give up $950,000 and stop false and misleading advertising pushing supposedly free credit reports. It also must disclose all terms and conditions. This comes from Inman Realestate News.

Consumerinfo used TV, radio and internet to promote two websites, www.freecreditreport.com and www.consumerinfo.com promising not only free credit reports but also free trials of a credit-monitoring service as a bonus. Valid credit card was required but not to be charged, just to open an account. But "According to the FTC's complaint, Consumerinfo's advertising and Web sites failed to explain adequately that after the free trial period for the credit monitoring service expired, consumers automatically would be charged a $79.95 annual membership, unless they notified the defendant within 30 days to cancel the service. Consumerinfo billed the credit cards that it had told consumers were "required only to establish your account," and, in some cases, automatically renewed memberships by re-billing consumers without notice. The FTC charged that the defendant's failure to adequately disclose the automatic billing and to get consumers' consent to bill their accounts violated federal law."

We can recommend the only official, FTC approved website www.annualcreditreport.com.

Or you can visit our Free Annual Credit Report website for a few more things to learn, no credit card required.

 
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