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ConsumerInfo.Com Settles FTC Charges

Deceptive Marketing of "Free" Credit Reports ... Again

By Martin H. Bosworth
ConsumerAffairs.com

February 23, 2007

Your Credit • CreditReport.com • Free Credit Reports • Equifax • Experian • Trans Union • Consumerinfo • Freecreditreports.com • Certegy • Chexsystems --- News • Feds Spoof Bogus Credit Report Offers • FreeCreditReport.Com Is Far From "Free" • Equifax Settles Consumer Protection Charges in Indiana • Washington Improves Credit Freeze Law • Should You Place A Freeze On Your Credit Report? • How Are You at Managing Your Credit Score? • Consumer Understanding of Credit Scores Remains Poor • TransUnion to Provide Credit Scores to Millions • Class Actions Challenge LifeLock • FreeCreditReport.com Can Get Expensive • Children Becoming Prime Identity Theft Targets • Study: Seniors Not Familiar With Credit Freezes • Feds Propose New Rules for Credit Bureaus • Experian To Offer Credit Freezes To Consumers • Two Credit Bureaus Offer Consumers Credit Freeze in 50 States • No 'Free' Lunch on Credit Report Sites • Insurer Unlawfully Poached Consumers' Credit Reports • ConsumerInfo.Com Settles FTC Charges • Rep. Frank Promises Hearings On Credit Bureaus • PayPal, Equifax Team Up To Offer "Free" Credit Monitoring • Free Credit Reports Available Nationwide Starting Sept. 1 • Marketer of "Free Credit Reports" Settles FTC Charges • Credit Bureaus: Biggest Threat to Your Identity • Escape From Plastic Prison • Experian, ConsumerInfo.Com Named in Class Action Suit • Free Annual Credit Reports Required by Next Year • Big 3 Charged • Trans Union Ordered to Stop Selling Consumer Data • Equifax in Trouble Again

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

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