As of April 2, the Credit CARD Act of 2009 went into effect in which the Federal Trade Commission will now require agencies that advertise free credit reports that actually cost money to stop doing so. Consumers will soon be able to distinguish between free reports and those that actually cost money.
The new rule will address those websites and organizations that advertise a [INSERT RELATIVE WORD HERE THAT MUST BE REMOVED BECAUSE OF AN IDIOTIC AUTOMATED PROCESS OF POSTING ARTICLES THAT MEASURES KEYWORD DENSITY INSTEAD OF THE ACTUAL CONTENT ITSELF]but it misleads consumers into believing that the organization is AnnualCreditReport.com, where consumers can obtain a free credit report each year from each of the three major credit bureaus, TransUnion, Equifax, and Experian, under the Fair and Accurate Credit Transactions Act of 2003.
The new laws will give the Federal Trade Commission the ability to make rules addressing commercial advertising of these free credit reports. In some cases, consumers seeking credit report information stray from advertisements and other marketing messages from third-party organizations only to discover that the free credit report is not available on the website they are visiting.
Rather, these websites try to sell products and services to those who visit them. The FTC hopes that by setting some rules about the use of these types of claims it will help protect consumers from unwanted services that cost money and become apparent when they want their free annual file disclosure.
Starting April 2, specific disclosures must be included on any website that promotes free credit reports. These disclosures include making a statement at the top of any web page that says “this notice is required by law.
Read more at FTC.gov. You are entitled to a free credit report from AnnualCreditReport.com or by calling 877-322-8228, the ONLY source authorized by federal law.”
Additionally, any print advertisement that also promotes the free credit report must also include a similar statement.
In addition, each website must also provide a clickable button that says “Take me to the authoritative source.” You must also provide operational links to FTC.gov.
These disclosures must be prominently displayed on the website. To do this, the website must use a high degree of contrast with other immediate backgrounds to ensure that the disclosure stands out.
In addition to this, the AnnualCreditReport.com website will no longer have advertisements or links directing consumers to other services until they have obtained their free credit reports.
In the past, each of the three national credit reporting bureaus’ home pages had a link on the site to allow consumers to visit them directly. The home page of those sites often contained additional information and sometimes advertised products and services.
What will this kind of disclosure mean for Americans? In short, it helps educate consumers on where to get the actual free disclosure required by law and provides detailed information that outlines the details of what they can do to ensure they purchase products and services that truly benefit them.