FTC Says freecreditreport.com Ain’t Totally Free
Friday, November 6, 2009, 7:24 AM | Leave Comment
The Federal Trade Commission is not amused with the company responsible for the popular advertisement in the media promoting freecreditreport.com. FTC has long believed that the company is deliberately diverting people from a government-mandated site where consumers can get free credit reports by law. FTC says the company is using the reports as a lure for a $14.95 monthly service that alerts subscribers to important changes in their credit status.
Research shows that most people’s credit report does not change frequently or at least not so abruptly that they would constantly need to know their credit on a monthly basis. However, credit monitoring provides customers with real-time updates about changes to their credit files. These changes might affect how lenders see them.
Many critics say these services are a waste of money for the majority of folks. They are better off to ask for and receive the free credit report that is mandated by the government to be provided free to the public once a year. If you schedule the report from the three record-keeping credit companies, then you can get a free report from each for a total of three free reports a year, every 4 months.
In a Nutshell
These services can be useful for identity theft victims, for example, who want e-mail alerts about new accounts that thieves might have opened in their name.
Many folks back away when they find out that the true purpose of the site is to hook people into a continuing monitoring subscription. Nevertheless, it’s a big money maker for the company. It’s a cash cow for the folks who run it.
What do you think?
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