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Regulation from FTC should help consumers get free report, which can help when trying to pay off debt
By Peggy Stillwell on Feb 25th, 2010
A new rule regarding credit reports may help consumers avoid paying for a service that should be for free.
The Federal Trade Commission is going to require that firms claiming to provide free credit reports add a disclaimer to their offers detailing that consumers can get one through a government-sponsored website. Federal law stipulates that consumers have a right to a free credit report from each of the credit bureaus every 12 months.
However, some companies have tried to tie the free credit reports to credit monitoring services, which may imply to consumers that the reports are not free. As a result, they end up purchasing credit monitoring services that they may not want in the first place.
"The amended rule is effective April 1, 2010, except for the wording of the disclosures for television and radio advertisements, which takes effect on September 1, 2010," the FTC said.
Credit reports can play an important factor for those consumers who are looking to improve their standing with lenders. A credit report can clue people into errors in their credit history, which can lead to lower credit scores.
Other things that can play into a credit score include having too much credit card debt, or being late on bill payments.
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