Agency settles with FTC over 'free' credit reports

0 Comments | USA TODAY, August, 2005 | by Sandra Block

A subsidiary of Experian, one of the three major credit bureaus, has settled government charges that it misled consumers into signing up for its credit-monitoring service by promising them free credit reports.

The subsidiary, Consumerinfo.com, agreed to pay refunds to aggrieved consumers, fully disclose the terms of its offers and pay $950,000, the Federal Trade Commission said Tuesday. The money will go toward consumer-education programs, the FTC said.

The FTC complaint said Consumerinfo.com's ads promised consumers they could obtain free credit reports and free trials of a credit-monitoring service through its websites, www.consumerinfo.com. However, the ads and Internet sites failed to adequately explain that consumers would automatically be charged $79.95 unless...