A Free Credit Score Followed by a Monthly Bill - NYT report and video

[Bozita]

Video at link:
http://www.nytimes.com/2009/11/03/your-money/credit-scores/03scores.html?_r=1&ref=business

November 3, 2009
A Free Credit Score Followed by a Monthly Bill
By RON LIEBER


On television it’s hard to miss the wildly popular band of slackers singing ruefully from a shabby apartment or while waiting tables in pirate regalia. The ruined credit that led to their financial misfortune might have been sparkling if only they’d tracked their status on freecreditreport.com.

The Federal Trade Commission is not amused. It has long believed that the company that owns freecreditreport.com is deliberately diverting people from a government-mandated site where consumers can get free credit reports by law, and using the reports as a lure for a $14.95 monthly service that alerts subscribers to important changes in their credit status.

In an unusual salvo, the government has even produced its own spoof videos featuring a trio remarkably similar to the gang in the earlier commercials, singing a warning: “Other sites may turn your head; they say they’re free, don’t be misled. Once you’re in their tangled web, they’ll sell you something else instead.”

But while the government has taken issue with the ads, it has had little to say about credit monitoring services themselves, a rapidly expanding niche approaching $1 billion in sales for which millions of people have signed up, often unwittingly. The problem, say critics, is that most people really don’t need it.

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[leftofcool]

1. Not only do you not need it, it is a scam

First, it isn't free and they will take unauthorized money out of your checkning account or from your credit card. Anyone considering this, do yourself a favor and go to www.ripoffreport.com before you let these scam artists have your money.

[ellenfl]

2. scam? i thought that site was legit? eom

[leftofcool]

6. They will tell you it is free then sign you up

for things you don't want then charge your bank account. They won't let you cancel. They are all scum and scam. If you want a credit report, write to each credit bureau yourself and pay them to send it to you.

[TwilightZone]

7. No need to pay for them.

Just go to annualcreditreport.com - you can get one free report from each of the three reporting agencies every twelve months.

[ellenfl]

8. that may be where i got mine. i will have to check tonight.

i have never seen anything on any statement for the two i ordered a year or so ago. thanks for the heads up.

ellen fl

[Bozita]

10. Thanks for the link to Ripoff Report. ... Very interesting website!

www.RipoffReport.com

[Initech]

3. I've always wondered how a website called "FREEcreditreport.com" can afford all those ads.

Seriously those god damn ads are literally in your face 24 hours a day. :argh:

[Jkid]

4. What's even worse is that annualcreditreport.com does exist.

Annualcreditreport.com is the only place you can get your credit report for free, no catch. And even have their own advertisements as public service announcements. Problem is that like most PSAs in America, you'll never seem them during prime-time television, and are dumped on weekends where no one will watch them.

http://www.ftc.gov/freereports

But they are plenty of paid for credit report ads, such as triple score and freecreditreport.com

[gmoney]

5. Thanks for the reminder!

Just checked mine, and everything looks as I expected. Got Equifax today, and put reminders on my calendar to check a TransUnion in 4 months, and then Experian in 8 months, then repeat. Works out to be (roughly) Election Day, 4th of July, and March 4th (Forth)... pretty patriotic days, or something.

Note: while giving me the free report, Equifax did try to entice me into various subscriptions and "enhanced services" -- I took the bait and paid $7.95 one time to get my FICO "Credit Score" but it's unclear if that would have been included in the free report or not.

[zonkers]

9. As I understand it, they can only scam you if you give them a CC or Debit card #?