Most people you ask can easily recall those memorable FreeCreditReport.com commercials heard so frequently 
all over the television and radio, offering consumers a free copy of their all-important credit report and portraying episodes of life for a poor guy who didn’t check in on his own credit. While the URL for that particular site does look promising, the advertising use of the word ‘free’ is misleading and the Federal Trade Commission wants the credit monitoring industry to be a whole lot more clear.
Where the FTC Stands on ‘Free’
The FTC has imposed new guidelines that require websites and advertising on television, radio and in print to clarify what sites are really trying to sell. In essence, companies that are offering free credit reports are doing so to lure consumers into signing up for credit monitoring services. These monitoring memberships typically charge consumers each month for updates on credit activity. Membership dues are usually automatically withdrawn from consumer accounts. Unfortunately, many consumers are unaware of how the set up works and end up paying for a service they don’t want or need because they are confused.
Confusion stems from consumers who simply want access to their free credit report. Each person is entitled to one free credit report from each of the credit reporting bureaus annually and any time they are denied credit. However, companies take advantage of consumers limited knowledge about how the free credit reports work and often put out misleading advertisements to get them to take on a paid membership for other services. Plain and simple – the free credit report consumers have a right to receive is totally free and can be obtained only at AnnualCreditReport.com. Other sites might give away a free report but they are also selling something else, many times in a deceptive manner.
What Are Credit Monitoring Services?
Credit monitoring services are typically used to keep closer tabs on credit scores and histories. Monitoring services are used to alert consumers when something changes on their credit reports and can help to limit identity theft and fraud occurrences. For some people, these services can be helpful but in general, most people do not need to pay the costly monthly charges to have access to the service.
Consumer Groups Happy
The move by the FTC is a welcome one. Even the Better Business Bureau is pleased about the changes since more than 11,000 lodged complaints have been filed about such deceptive practices. As consumers are working to get more financially educated, it is a relief that the government is stepping in to help with that education to better American’s financial know-how. As more consumers are looking to better track their credit and work harder to save more money while spending more wisely, it’s no wonder people are complaining about getting ripped off by credit monitoring services.
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