The Federal Trade Commission (FTC) has agreed to a $300,000 settlement with ConsumerInfo.com (a/k/a Experian Consumer Direct) of charges that the company's "free credit report" offer failed to explicitly disclose that subscribers would be automatically signed up into a paid credit-monitoring program.
The FTC charged that ConsumerInfo.com had engaged in deceptive marketing practices through requiring credit card information for consumers to purchase their "free credit report," then billing them $79.95 annually unless they opted out within 30 days.
ConsumerInfo.com was also charged with violating the terms of a previous settlement with the FTC over similar practices in August 2005. The previous settlement netted the FTC $950,000, as well as requirements for ConsumerInfo.com to cease engaging in deceptive business practices and clearly disclose the terms and conditions of their services.
ConsumerInfo.com's parent company, Experian, is one of the three major credit reporting agencies. The bureau's many subsidiaries have run sites such as "FreeCreditReport.com," where visitors are cajoled into signing up for services that promise free credit reports and credit monitoring, but end up with paid subscriptions to services that are often very difficult to cancel.
The FTC charged that ConsumerInfo.com continued to run ads for their "free credit report" service after the previous settlement. In addition to the $300,000, the current settlement bars ConsumerInfo.com from advertising any of its services as related to the free annual credit reports consumers can receive each year from the major credit bureaus, under the terms of the Fair Credit Reporting Act.
All Americans are entitled to one free credit report each year from each of the three major credit reporting agencies -- Equifax, Experian, and Trans Union. The free credit reporting service recently marked its first anniversary of availability across the 50 states.
To get a copy of your free annual credit report, you can:
• Call 877-322-8228
• Visit www.annualcreditreport.com. AnnualCreditReport.com is the only official site for free credit reports.
• File a written request for your report to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
