Confusion over credit reporting

FREECREDITREPORT.COM FORCED TO FACE THE MUSIC

Excerpt:

Like the song says, he should have seen it coming at him like an atom bomb.

The singer of those FreeCreditReport.com jingles might sound a bit less peppy now that the Federal Trade Commission is making the company behind the ads -- credit bureau Experian -- face the music. Heavy-handed disclosures aimed at ending years-long confusion over free credit reports will begin to appear in the ads next month. The changes are among new consumer protections enacted by Congress in the 2009 Credit Card Accountability Responsibility and Disclosure Act.

In one disclosure viewed by msnbc.com, the top of the FreeCreditReport.com Web site was covered with a large grey block with type that read: "You have the right to a free credit report from AnnualCreditReport.com ... the only authorized source under federal law," with an obvious link to the site. Consumers who still want to sign up with FreeCreditReport.com would have to scroll down and enroll in the paid service offered by Experian.

"That's what we were aiming for," said Maneesha Mithal, an FTC attorney. "Congress wanted the disclosure to be really prominent."

Many Web sites, including FreeCreditReport.com, claim to offer free credit reports, but do so only as a come-on for costly credit monitoring subscriptions services.

The pay site: www.freecreditreport.com

The free site: www.annualcreditreport.com

Comment: I used the free site this year. I actually prefer the ww.myfico.com which while a paid service has very clear reporting, ID theft alerts, and other tools.