Industry News

Marketer of ‘free credit reports’ settles FTC charges

Company to provide refunds to consumers
Published on Aug 16, 2005

Consumerinfo.com Inc., doing business as Experian Consumer Direct, has settled Federal Trade Commission charges that it deceptively marketed "free credit reports" by not adequately disclosing that consumers automatically would be signed up for a credit report monitoring service and charged $79.95 if they didn't cancel within 30 days, in violation of federal law. Consumerinfo.com Inc., which also operates as Qspace Inc. and Iplace Inc., is a wholly owned subsidiary of Experian North America, which is also the parent company of Experian Information Services, one of the three national credit reporting companies. The settlement requires Consumerinfo to pay redress to deceived consumers, bars deceptive and misleading claims about "free" offers, requires disclosure of terms and conditions of any "free" offers, and requires the defendant to give up $950,000 in ill-gotten gains. According to the FTC complaint, the defendant drove consumers to its www.freecreditreport.com and www.consumer...

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