NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS   RESOURCES  
Small Claims Guide   Class Actions   Lemon Laws   FAQ   Newsletters  
Bookmark and Share


Complain about a product or service

Automotive    Education    Employment    Electronics    Family    Finance    Health    Homeowners    Insurance    Pets    Shopping    Travel     Print This     Email This    



NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

FreeCreditReport.com Can Get Expensive

Opt-out credit reports can run up big bills quickly





By Mark Huffman
ConsumerAffairs.com

January 10, 2007

Your Credit
Credit ReportCreditReport.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

At the beginning of a new year, many consumers check their credit reports, taking advantage of the federal law that allows them once a year to access reports from all three credit reporting agencies at no charge, using www.annualcreditreport.com.

However, it's not always all that easy.

Many consumers seeking their free credit report apparently go instead to a commercial service -- FreeCreditReport.com, which is currently advertising on TV with youth-oriented commercials.

Despite its name, the credit monitoring service which comes with the credit report is not actually free, as Martin, of Hollywood, Florida, discovered late last year.

"I went to check out the freecreditreport.com site," Martin told ConsumerAffairs.com. There was supposed to be no charge; I am still being charged by Freecreditreport. My bank account is totally screwed up and overdrawn."

Fib, a recent immigrant to the U.S. living in San Francisco is a good example of a confused consumer. He says he went to FreeCreditReport.com from Edmunds.com, where he was researching an automobile purchase.

"Being very new to the Americans' credit history checking, I thought that free credit report is allowed by government once in 12 months. I signed up and thought I was signing up for this FREE credit report which I see each time I login. When billing comes, my credit card was charged for several months."

Opt out

Connie, a consumer in Woodbury, Minnesota, said she was also tricked into signing up for the not-so-free service, and faults the company for using "a deceptive method" to sign up customers. The problem, she says, could be resolved by a few simple changes on the FreeCreditReport.com Web site.

"It is an opt-out set-up so that if you request the free report and you fail to call and opt out before the 30 day free trial ends, you are stuck with the service until you do cancel," she told ConsumerAffairs.com. "I told them they could just as easily set up their website to be an opt in process so a consumer purposefully makes the decision to sign up for the service or not.

"Their kind of deceptive service depends upon customers like me who missed the information that was buried in the material prior to asking for the free report. I guess in the end, nothing is never really free...you end up paying one way or another."

Responding to criticism, FreeCreditReport.com says it does its best to make a clear distinction between its commercial service and the government's free credit report program.

It does provide a report at no charge, but it's up to the consumer to take a proactive step to avoid being charged for its monitoring service – a practice known as "negative option" marketing.

"When you order your free report here, you will begin your free trial membership in Triple Advantage Credit Monitoring," the company states in a prominent position on its Web site. "If you don't cancel your membership within the 30-day trial period, you will be billed $14.95 for each month that you continue your membership.

Long history

The company is a subsidiary of Experian, one of the three credit reporting agencies. It was established in 1995, long before Congress enacted the law allowing for a free credit report each year.

In August 2005, Experian 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.

That case involved Consumerinfo.com, Inc., doing business as Experian Consumer Direct, another subsidiary of Experian.



Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!

Follow us on Twitter.





CONSUMER NEWS

SAFETY RECALLS

Back to the top |

Advertisement


Custom Search
AUTOMOTIVE
• Dealers
• Manufacturers
• Service
• Extended Warranties
• Lemon Laws
• Recalls
• Tires
• Transporters

FAMILY
• Aging
• Children, Parenting
• Recalls
• Dating
• Education
• Entertainment
• Pets
• Weddings
FINANCE
• Annuities
• Banks
• Credit Cards
• Debt Collection
• Debt Counseling
• Insurance
• Investing
• Loans
• Mortgages
• Payday Loans
• Student Loans
• Tax Prep

HEALTH
• Doctors
• Drugs, Pharmacies
• Health Clubs
• Hearing Care
• Hospitals
• Nursing Homes
• Nutrition, Diets
• Vision Care
• Weight Loss
HOUSE & HOME
• Appliances
• Cookware
• Furniture
• Home Improvements
• Lawn & Garden
• Movers
• Pools & Spas
• Realtors, Rental Agents
• Recalls
• Utilities

ELECTRONICS
• Cable TV/DBS
• Cameras
• Cell Phones
• Computers
• Home Electronics
• Internet Access
• Local Phone Service
• Long Distance
• VoIP
SHOPPING
• In-Home
• Online
• Retail Stores
• Sporting Goods
• Supermarkets
• Telemarketers

TRAVEL
• Airlines
• Bus Lines
• Car Rental
• Cruises
• Hotels
• Travel Agents
• Trains

RESOURCES
• Class Actions
• Complaint Form
• Small Claims Guide
• Lemon Laws
CONSUMER NEWS
• Latest News
• Automotive
• Telecom
• Financial
• Health
• Homeowners
• Scams
• Seniors
• Travel
• More ...

RECALLS
• Automotive
• Children's Products
• Drugs
• Food
• Household Products
• Sporting Goods

ABOUT US
• FAQ
• Privacy Policy
• Advertise With Us
• Newsroom
• Syndication
• Terms of Use

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2010 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.