Online marketers, display advertising networks, and large online media portals run consumer credit reporting offers because they offer a high CPA. TransUnion, Experian, etc… are able to offer such a high CPA because consumers rarely cancel once they join - especially now that identity theft has been so ingrained in the average American consumer’s mind. I wonder if identity theft is as “large” as an issue as it is here in the US?

Signing up to receive your “free” credit report is the teaser, shock statement, and is in fact misleading and deceptive to consumers. The affiliate ringtone industry has recently undergone some major changes: advertisers are unable to use the word free, no charge, etc…. Affiliate ringtone marketers are, however; able to use the word “complimentary”. It is probably only a matter of time before the state attorney’s office in FL begins investigating “free” credit reports. I haven’t spent the time to go through the registration process to receive my “free” credit report - but I CAN GUARANTEE that it is not free. I think I actually did it in the past, and you get scrubbed information that requires you to subscribe in order to see the real information.

I wonder how many consumers actually need to know their credit score, and even if they determine their credit score, what can it really do for them? If you are going to buy a car, get insurance, rent an apartment, or buy a home. Chances are the proprietor of that business is going to run a credit check on you. So why even bother signing up to receive your credit score in the first place? The only MAJOR benefit I have found to finding out what your credit score is was the first time I made an offer on a house and I sought out a mortgage. The higher your score, the lower your points, and looser the terms of the mortgage contract. Even when I applied for loans, the lender pulled my credit score for me! So it takes me back to the original question of: Are “free” credit reports a consumer necessity or consumer fraud?

Tags: consumer fraud, credit check, credit report, deceptive advertising, florida state attorney, free credit report, freecreditreport.com, misleading advertising, recurring billing, state attorneys office

This entry was posted on Sunday, January 13th, 2008 at 4:50 pm
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