Press: "Free credit report" my eye [FTC]

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. The settlement requires Consumerinfo to pay redress to deceived consumers, bars deceptive and misleading claims about “free” offers, requires disclosure of terms and conditions of any “free” offers, and requires the defendant to give up $950,000 in ill-gotten gains.

Consumers can get free reports by phone, mail, or at one authorized Web site, www.annualcreditreport.com. The FTC complaint alleges that Consumerinfo deceptively advertised and promoted its “free reports” at its “freecreditreport.com” Web site, without disclosing that it was not associated with the official annual free credit report program.

The FTC staff has released answers to frequently asked questions available at FTC Free Reports to help Consumerinfo customers determine if they’re eligible for a refund. It also has established an information hotline for consumers to call for information on refunds. The phone number is (202) 326-3457.