Here is the crux of the problem. The ads offer free credit reports to consumers. That sounds fairly up-front on the surface. But many of these commercials are actually trying to sell a monthly subscription service for credit monitoring. That is a far cry from a single free credit report.

Some of the confusion arises because the Fair and Accurate Credit Transactions Act gives consumers the right to get a free credit report each year from each of the 3 major credit reporting bureaus. Once you understand this fact, the commercials offering a free credit report really don’t make sense. Obviously they are selling something but people are getting charged after trying to obtain their free credit report through the advertiser’s website.

What they are getting charged for is a monthly credit monitoring service they did not intend to sign up for. Consumers are claiming they are required to enter their credit card number before they are able to ask for the free credit report. The credit card statement arrives and there’s a charge. Upon inquiry they find out that authorizing their credit card was actually authorizing a monthly subscription service.

When any company offers something free and you are required to enter payment information, there is an excellent chance you are not getting anything for free. Btu the advertisements can be confusing and deceptive, and that’s why Schumer wants to make some changes through FTC regulation and rule enforcements.

First, Schumer is asking the FTC to force these credit subscription services to include a statement on their websites and commercials letting people know the government entitles them to free credit reports from the credit reporting agencies. Second, Schumer he wants it made clear on these same websites or in commercials that consumers who ask for credit information from the company are not accessing the only authorized website where credit reports authorized by the law can be requested.

There is only one website at annualcreditreport.com that consumers should use to request their free credit reports that the government allows. Schumer wants consumers to understand while watching the commercials that they do not have to pay anything for their free credit reports that are authorized by the government annually.

Senator Schumer said, “If these companies want to say – or sing for that matter – that they are giving people free credit reports, then they can’t charge people $15 a month, simple as that. For years, these companies have said with a smile that they will provide a free credit report – even though the government already requires a credit report be provided for free every year – and then suddenly, months later consumers get a bill in the mail for their credit monitoring services. My plan would finally bust up this scam an give consumers some honest choices.”