Annual Credit Reports and the misleading commercial for a free one

NPR reported this morning on the "Free Credit Report.com" commercial, which you can see on YouTube through a simple search. What is misleading about the commercial, as the NPR article reports, is that the report is only "free" after you pay the $15 monthly fee. The New York Times also reports how various consumer groups have targeted this company for running what is, effectively, a misleading (and therefore deceitful) advertisement. It also notes that the company that runs this free credit reports company (Experian) is one of the three major credit bureaus for which you can already get a free annual credit report. Hey, these companies are allowed to make money, so why not capture a bigger share of the market?

The bottom line is that under federal law, you can get a free annual credit report through AnnualCreditReport.com, which will provide your report from each of the three credit reporting companies. The site's frequently asked questions is here.

Unlike other commercials I have heard and remarked on, I can't knock this one too much because it's very effective. But like all commercials that purport to give stuff away for free, just remember to use your head and double check the fine print along the bottom line. As a wise economist once said, "There's no such thing as a free lunch." (TANSTAAFL) Similarly, if it wasn't for this Congressional act, there would be no such thing as a free annual credit report.

Tags: freecreditreport.com, annual credit reports, free annual credit reports