We have all seen the TV spots of companies, and especially FreeCreditReport.Com, advertising FREE credit reports. I have always wondered how they can afford to saturate the TV airwaves for a free service.
Well, the new credit card reform bill signed into law by President Obama will not just try to put a stop to several unfair practices of the credit card industry -- it also targets misleading advertisements for phony "free" credit reports.
The law calls for the Federal Trade Commission to issue new rules that will force free credit report advertisers to inform consumers that the only place for a free credit report is AnnualCreditReport.Com. And, TV and radio ads will also be required to include the statement: "This is not the free credit report provided for by Federal law."
Under the Bush administration, the FTC repeatedly fined the folks behind FreeCreditReport.Com for deceptive advertising, since you only get the "free" report after enrolling in a $15-a-month credit monitoring program. But the fines amounted to mere wrist-slaps.
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