Credit Card Law Will Curb FreeCreditReport.com Ads

The credit card reform bill signed into law by the president on Friday won't just put a stop to several unfair practices of the credit card industry -- it also targets misleading advertisements for phony "free" credit reports.

The "free credit report" advertised non-stop on cable television, it bears repeating, isn't free at all. The law calls for the Federal Trade Commission to issue new rules that will force free credit report advertisers to inform consumers that the only place for a free credit report is AnnualCreditReport.com.

Television and radio ads will also be required to include a pretty deflating statement: "This is not the free credit report provided for by Federal law."

It's hard to see how the FreeCreditReport.com's Renaissance Fair rocker will fit that one into his rhymes about pointy slippers and green wool tights.

Under the Bush administration, the FTC repeatedly fined the folks behind freecreditreport.com for deceptive advertising, since you only get the "free" report after enrolling in a $15-a-month credit monitoring program. But the fines amounted to mere wrist-slaps.

The new rule is good news for consumer advocates.

"For too long, FreeCreditReport.com has taken advantage of a weak consent decree negotiated by the Bush FTC that has let it confuse consumers into buying its over-priced, unneeded subscription credit monitoring product that isn't free," wrote U.S. Public Interest Research Group's Ed Mierzwinski in an email to the Huffington Post. "Consumers have wasted millions buying a service that doesn't prevent identity theft and doesn't raise your credit score, sold by one of the companies whose sloppy practices make identity theft easy and keeping your credit score accurate hard."

Comments

[zstock00]

01:47 AM on 06/04/2009

So I work for FreeCredit­Report.com­. I hear people calling all day that this is a scam you pull us in and you don't tell us we are going to be charged. Even before the law concerning credit cards was signed in the Website stated in a LARGE box that it was a trial membership and gave a link to AnnualCred­itReport.c­om it's not even hidden, you have to see it cause it's right under the guy in a green jacket. It even has Important Informatio­n in bold 14 point font that is meant to get your attention, It also states 3 times about how much it is and that you have to cancel the account in the free trial. It says that above the order button. People just don't care and don't read it. If you don't read it then it's your own fault that you are going to get charged for the membership and as far as fine print if you read it, it states you actually have two more days to cancel than you do in the LARGE 14 point font. lots of places promise miracle diets and people don't complain about that like they do over a credit membership that actually watches your Social Security Number for Identity theft and lets you know within minutes of any activity that can be Identity theft. For what this cost you, you can actually save in interest rates by actually repairing your credit and getting a better score.

[LauraD]

11:15 AM on 05/29/2009

Alright, so it's good that they're cracking down on deceptive advertisin­g, and I've never used freecredit­report.com­, mainly because I get a quarterly credit report through my Capital One account and partly because I knew it wasn't really free.

BUT

The tunes are pretty catchy, and I'll miss them.

Slightly OT: Does anyone remember the original freecredit­report.com commercial­s, with the old guy in the suit on the white background and the woman's voice singing "Freeeee Credit Report dot Cooooom?" Yeah, well, their advertisin­g is light years ahead of where it was then.

[whiskeytangofoxtrot451]

08:55 AM on 05/29/2009

I've never used freecredit­report.com because I always assumed it was a scam. But I have to admit, some of those jingles are catchy.

[tomasedison]

07:27 AM on 05/29/2009

FreeCredir­Reort.Com = the mother of all bait n switch schemes by the cc companies

This site NEVER should have been allowed from day 1

[spartancaver]

05:49 AM on 05/29/2009

What about all those "free set of knives", act now and get a "Free toaster", order now and we will send you "Free replacemen­t parts for life" ? I didn't want the jar opener, so I asked their operator standing - by, for the free razor blades mentioned in the offer. First there was a long pause, then laughter as the phone went dead.
I hope someone else has commented on the irony seeing the report followed by a "Free Credit Report " ad.

[sqwimpy]

03:43 AM on 05/29/2009

This is one of many ways that some American businesses have been getting away with for years. I am glad that Obama has finally achieved the first rung of the ladder by taking on these guys. I'm ready for many more to come: Bank fees, Utility (ghost) fees, etc...

One thing that I have always realized in my life. You can't satisfy everyone all the time. I have more, but I won't bore you. You need to weigh the essence of a person. You will most of the time disagree with someone, but you have to look at everything that a person stands for. Obama is for the people, where others have represente­d the interests of big business pocketbook­s and other Coalitions­. The more that other parties fight against him, the more I know we did something right for a change.

[Isabelle101]

12:31 AM on 05/29/2009

Are we supposed to be grateful? Obama used our money to bail out these tieves! Then he wants applause because now they're only going to charge us less for our own money!

No applause. Make Michelle shop at the dollar store and pass a law that no one can profit from government service.

Credit card companies are pigs!

[whiskeytangofoxtrot451]

08:42 AM on 05/29/2009

How will making Michelle shop at the dollar store benefit credit card customers?

But it's fun pretending the bank bailouts were all Obama's idea instead of the reality that they were started by Bush.

[Bpeirce]

11:33 PM on 05/28/2009

Free Credit report. com
is false advertisin­g..It's far from FREE It's a rip off

[Earl Brown]

02:31 AM on 05/29/2009

well thats clearly a biased liberal view, according to fox news standards freecredit­report .c om has done an amazing job, they deserve the truth in advertisin­g award. seriously, American Heros. Heros.

[boilinabag]

10:34 PM on 05/28/2009

good, the ads were funny the first time, but after the insassant plays and the fact that it is a scam, should be stopped. but the deal the banks are getting really blows for the consumer..­.. the banks are controllin­g the new administra­tion......­.......

[suzdav]

09:50 PM on 05/28/2009

Thank God, I hate that guy.

[Jillianw]

07:46 PM on 05/28/2009

Thank goodness, that stupid song gets stuck in my head all day.

[ScreenName05]

07:21 PM on 05/28/2009

I am for anything that gets these pirates off the air. Now, lets talk about male enhancemen­t ads - aren't they false advertisin­g as well?

[ThinkForYourself3]

06:43 PM on 05/28/2009

Bummer, I love those commercial­s on MSNBC.

My favorite is that car insurance girl with bright red lipstick, she is soooo cute!!!

[LauraD]

11:18 AM on 05/29/2009

That's Progressiv­e Insurance, not freecredit­report.com­. I don't think that Progressiv­e is covered under the new credit card laws, but I could be wrong.

Agreed, btw - those are great. My favorite is "What am I thinking about now?" "Tacos?" "YES."

Classic.

[tigerlyly]

04:34 PM on 05/28/2009

If it's not free--then it shouldn't be labeled as such. False advertisin­g needs to be regulated.

[hypnotoad72]

07:15 PM on 05/28/2009

Agreed.

[younowme]

08:15 PM on 05/28/2009

Pres. Reagan, Quote - "Consumers are not the problem, Bush Administra­tion FTC are the problem"
Name05 - nothing here talks about 'CREDIT SCORE" - it only discusses free reports. But nothing counts unless you have your SCORE and that has to still be paid for . Art makes no mention of this important fact.
Consumers fight the FTC for abolishmen­t of this whole mess.. It's a discrace and it shames each and every American. Shame

[ScreenName05]

07:25 PM on 05/28/2009

False advertisin­g is regulated, just not enforced - basic problem that started with Bush and his anti-regul­ation habits. Free offers are regulated under 16 CFR 251, under provisions of 15 USC section 45. A free offer must state the nature of the offer and what the terms and conditions are in a conspicuou­s manner within one page of the free offer. On TV, I would assume this would mean as part of the ad.

[Leigh49]

02:54 PM on 05/28/2009

Don't pick on the lead actor. He's just a guy trying to make a living. The spots won't go away, they'll just revise them.