New rules make free credit report claims more clear…
Ask anyone who has followed the advice of a credit counselor to get their credit report and you will hear horror stories about all the hoops they had to jump through to get a copy. With aggressive TV commercials, Internet advertising and email solicitations, most consumers aren’t aware that they’re entitled to a free credit report each year and often sign for credit monitoring or other financial services to get it. The Feds are aware of the confusion it causes for consumers and are taking action.
Companies who advertise free credit reports pinpoint vulnerable consumers who are worried about their financial situation. In response, Congress has included the issue in the Credit Card Accountability Responsibility and Disclosure Act. The new rules written by the Federal Trade Commission going into effect on April 1 and will make the process clearer and easier, with companies who advertise free credit reports prohibited from hawking products to consumers who apply for a free report. All radio, television, print and online advertising must disclose the availability of a government sponsored service at annualcreditreport.com. In addition, consumers must be directed to the bureaus’ shared site and phone number.
All Internet advertising for free credit reports must include a banner disclosing that a free credit report service is offered by the federal government. For consumers who phone in their request, the disclosure must be made at the beginning of the call. Companies have until September to change their television and radio ads to make similar disclosures.
Consumers are entitled to a free credit report annually from each of the three national credit reporting bureaus, Equifax, Experien and TransUnion. The service these companies provide can be obtained by consumers without their help by just applying on their own.
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