Consumer Alert: Two Major 'Free' Credit Report Scams

There is nothing more fearful than the notion that some has stolen your identity and is wreaking havoc to your carefully built credit. Major companies are now exploiting this fear through various marketing schemes toting supposed "free credit reports" that are in reality, cryptic legalese-laden contracts that force the unknowing customer into some sort of credit monitoring service.

The following are two major offenders I have encountered:

Alert #1: FreeCreditReport.com

Back on May 10, 2007, I wrote my first blog about this internet-age swindle. They claim to provide free credit reports from the major agencies, and then hide in their 10 page legal agreement in 4pt font, an agreement to purchase a credit monitoring service.

I had done a little research back then, and discovered this company, MNI Credit Report Services, has had numerous consumer complaints.

Recently, I noticed that they started advertising on TV their "free" credit report.

THOSE CREDIT REPORTS ARE NOT FREE. THIS IS A SCAM!

Alert #2: Bank of America's Free Credit Report

I considered making this my #1 alert, as their approach was one of the most audacious and twisted attempts to swindling.

I received a call this morning from someone identifying themselves as an agent of Bank of America. He told me that BoA valued their customers, and wanted to ensure their customers had clean, clear, and no unusual issues on their credit reports.

I thought, "Wow, what a nice company."

Then he said, "After reviewing your report, if you do not notice any issues, call us back and cancel your subscription to our credit monitoring service."

I had to ask him to repeat that! But you read that correctly, BoA is now going to start providing a pay service for credit monitoring and customers have to OPT-OUT.

This is out of control. And as I stated above:

THOSE CREDIT REPORTS ARE NOT FREE. THIS IS A SCAM!

There is only ONE source for a free credit report, mandated by law to be provided to consumers once per year: www.annualcreditreports.com.

DO NOT GET SUCKERED IN BY THESE AND OTHER SIMILAR FREE CREDIT REPORT OFFERS!

"Free" Credit Reports

Recently I had a hour-long conversation with my credit card company getting rid of a charge from "MNI Credit Report Services". They charged me $9.95 for would I could only deduce as credit reporting services, but I didn't remember ever asking for that kind of service.

I did a quick Google search for this business, and found this site, along with many others that discussed the woes of other people who had been charged for the same service. As it turns out, "MNI Credit Report Services" is the name for the website www.freecreditreport.com. This website is pulling a fast scam on everyone.

They ask for your credit card to "verify your identity" and in small font somewhere (they claim), they also tell you that you are signing up for credit monitoring services.

Many people end up getting charged four or five times before they notice it. Thankfully I caught it before the end of the billing cycle, so my credit card company immediately reversed the charges.

So instead of falling for any of these credit report scams, make sure to start from this website, provided by the government that will link you to www.annualcreditpreport.com that is the only sanctioned free credit report website provider.