FTC Takes Action Against Deceptive Credit Report Marketing

   

Posted: Mar 8, 2010

In an effort to protect consumers, the Federal Trade Commission has taken action against websites advertising "free" credit reports that often come with costly credit-monitoring services.

Starting April 1, websites that offer these reports will be required to post a disclosure directing visitors to the government-endorsed AnnualCreditReport.com.

Radio and television advertisements will be required to disclose the federally-authorized source beginning in September. This action by the commission was required under the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (a.k.a. the Credit CARD Act).

Consumers are entitled to one free report from each of the three credit bureaus during a 12-month period. It's recommended that cardholders stagger the requests by four months in order to get an updated snapshot of their credit activity throughout the year.

"Information in credit reports may affect whether consumers can get a loan or a job, so it is important that consumers check their credit reports and correct any information that is inaccurate," the announcement said.

By monitoring their credit, consumers may be able to protect themselves from mistakes that can be damaging to their credit score. They're also more likely to notice and take action against fraudulent accounts that may have been opened under their identity.