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| Credit Answers > Debt-Management-Articles-2010 > Credit Report |
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USA Today reports that the Federal Trade Commission aims to clear up some consumer confusion regarding television and website advertisements offering free credit reports.
Consumers who respond to many of these advertisements later discover that they actually signed up for a monthly credit-monitoring service that was anything but free.
According to the FTC, the only company that truly offers a no-strings attached free credit report is www.AnnualCreditReport.com.
Beginning April 1, 2010 websites falsely advertising 'free' credit reports will be required to disclose prominently that consumers have a right to obtain a free report by visiting the website
www.AnnualCreditReport.com or by calling 877-322-8228.
As of September 1, 2010 radio and television ads must also include the disclosure.
Per the FTC, credit bureaus are required by law to provide a free credit report to consumers each year, but you may not be entitled to your credit score.
Some credit bureaus offer to sell you a credit score while you're ordering your credit report leading some consumers to believe that they have to purchase their score to get their report. The FTC rule
attempts to address this problem as well. Beginning April 1, credit bureaus must wait until after consumers receive their credit reports to advertise products and services that come with a
fee.
For more information about your right to free credit reports, go to www.ftc.gov/freereports.
Debt Collection Probe Costs Retailer Nearly $350,000
According to Inside A.R.M., furniture rental retailer Rent-A-Center will pay the state of Washington nearly $350,000 and will abide by certain restrictions regarding its collection tactics.
A Washington Attorney General's Office sued Rent-a-Center in 2009, accusing the national lease-to-own retail chain of crossing the line with its collection tactics which included threatening customers over the
phone and harassing them at their homes.
The Attorney General's Office claimed Rent-A-Center's collection practices were unfair and deceptive under Washington's Consumer Protection Act.
The national retail chain agreed to settle and will pay the state $243,000 in attorneys' fees and legal costs plus $100,000 to monitor and enforce the order.
The company denied the state's allegations but agreed to a lengthy list of restrictions on its collection practices as part of the settlement.
Rent-A-Center and its employees must adhere to a variety of restrictions. Some of these restrictions include but are not limited to:
Speaking to a customer more than six times per week to discuss an overdue account.
Engaging in violence or trespassing on a customer's private property in order to collect a debt.
Discussing a customer's account with anyone other than a spouse.
Engaging in the use of language meant to abuse or degrade the customer.
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