March 2, 2010

By: Michelle Grinberg, Esq.

We have all seen the television commercials advertising free credit reports using catchy jingles or humor.  However, what many consumers do not realize are these credit reports are not truly free.  In order to get a “free” credit report from one of these companies, consumers must shell out money on credit monitoring or other goods and services.  The Federal Trade Commission (“FTC”) has amended the Free Credit Reports Rule in order to address the concerns of such deceptive advertising and underlying hidden fees.  The new rule requires disclosures which inform consumers of their right to a free credit report from www.AnnualCreditReport.com, which is the only authorized source for free annual credit reports.  Each consumer has the right to receive a free report every year from each of the three credit reporting agencies, Experian, Equifax and TransUnion.