How to Order a Free Credit Report


 

FreeCreditReport

Before applying for an automobile, credit card, or home mortgage loan, it’s a good idea to check your credit report for errors. Banks, credit unions, auto finance and mortgage lenders have all raised the bar when making credit granting decisions. Long gone are the days when a 620 FICO credit score sufficed. Borrowers with bad credit are being turned down or forced to pay significantly higher interest rates when applying. Those with low credit scores have even been denied employment opportunities and automobile insurance.

Negative information contained in credit reports – such as late payments, collection accounts and public record entries – determine whether you can obtain credit, goods, benefits, services, employment and/or insurance. It’s important to review your Equifax, Experian and TransUnion credit reports on a regular basis and correct any information that is inaccurate, erroneous, obsolete, or fraudulent due to possible identity theft.

Don’t be scammed by the numerous “free credit report” opportunities found on the Internet. While dozens of companies offer that so-called “free credit report,” many of them have strings attached, such as subscription-based opt-in requiring you to provide credit card information.

You really can obtain a free copy of your credit report.

Under a narrow set of circumstances, you are entitled to a free copy of your credit report directly from the credit reporting agencies. If you have been denied credit, goods, benefits, services, employment or insurance, Equifax, Experian and TransUnion are statutorily mandated under the Fair Credit Reporting Act to provide a copy without charge.

Equifax can be contacted at (800) 685-1111 or online at www.Equifax.com.

Experian can be contacted at (888) 397-3742 or online at www.Experian.com.

Trans Union can be contacted at (800) 916-8800 or online at www.TransUnion.com.

When ordering credit reports, be sure to indicate that you were denied credit, goods, benefits, services and/or employment when prompted. Absent these exceptions, you are entitled to one free “annual credit report” per year. For your free annual credit report, contact the central source at 877-FACT-ACT (877-322-8228) or online at www.AnnualCreditReport.com. Follow the voice prompts and obtain your credit report for review.

Credit scores are not included with any of the “free credit reports” provided by the national credit reporting agencies of Equifax, Experian and TransUnion.

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Protect yourself against credit repair scams


While the economy has been showing some signs of improvement, your good name and reputation is becoming more important within the community. Creditors have tightened their guidelines effectively barring millions of Americans from borrowing money.

Mortgage lenders, auto finance companies, credit card issuers and banks have all raised the bar. Borrowers with low FICO scores can expect to be denied or to pay significantly higher interest rates than those with excellent histories.

Long gone are the days of obtaining credit, goods, benefits, services and/or employment with a 620 score. In most instances, a consumer will be denied if they maintain a credit score lower than 740. Even those with high credit scores have experienced closed credit card accounts and equity lines.  When an account has not been closed, credit limits have been reduced to the current balance due. 

The terms credit repair, credit restoration or credit rehabilitation are somewhat synonymous. Those with bad histories cannot afford to ignore the potential benefits of credit repair. In today’s economy, a strong FICO score is more important than ever. 

Approximately 78% of credit profiles in the United States contain some sort of error or omission materially impacting credit worthiness.  Absent self-help and the “do-it-yourself” approach, a consumer may hire a credit service organization (CSO) in the restoration of their good name and reputation within the community.

Most – but not all – CSO’s specialize in the restoration of consumer credit worthiness as well as identity theft issues.  Assuming that the credit repair company is performing within the law, they utilize laws enacted by Congress to dispute negative, erroneous, obsolete, and/or fraudulent information contained within your consumer credit profile.

Utilizing the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, and the Fair and Accurate Credit Transactions Act, a reputable CSO will assist in the submission of disputes electronically, verbally and in writing to the Equifax, Experian and Trans Union consumer reporting agencies.  Disputes are also submitted to creditors, collection agencies, third-party record providers and/or state, federal, local, and private regulatory authorities.

Unlike most credit repair clinics that submit the same written dispute letters monthly, a reputable CSO will have devised a strategy whereby disputes are submitted electronically, verbally and in writing over a long period of time to the credit reporting agencies, creditors, collectors, and third-party record providers reporting negative, inaccurate, obsolete and/or erroneous information.

Keep in mind that anything a CSO can do – you can do yourself for little to no cost. With that said, a reputable organization should have an edge as they will possess the education, knowledge and a source proven method that is generally unknown to the average consumer. 

A reputable CSO should have a provable track record of results as well as the ability to modify and/or remove erroneous or inaccurate judgments, liens, foreclosures, bankruptcies, short-sales, student loans, inquiries, derogatory tradelines, personal identifiers and other transient data from a consumer’s credit report. Although the credit restoration process can take anywhere from 30 days to six months, most individuals should see some results within the first 45 to 60 days.

Credit repair, credit restoration and/or credit rehabilitation is as legal as pleading “not guilty” in a court of law. With that said, one must understand that most CSO’s are not law firms and that their employees may not be licensed to practice law.  As such, even a reputable CSO cannot provide legal advice nor may they represent a consumer before any court or in any legal proceeding.  In the event that legal representation is required, the credit repair company should provide an appropriate attorney referral for consultation.

Under the Fair Credit Reporting Act, as modified by the Fair and Accurate Credit Transactions Act, consumers are entitled to a free copy of their credit report under a narrow set of circumstances.  If you have been denied credit, goods, benefits, services, insurance, and/or employment, the credit reporting agencies of Equifax, Experian and Trans Union are statutorily mandated to provide a copy free of charge.

Equifax can be contacted at (800) 685-1111 or www.Equifax.com;Experian can be contacted at (888) 397-3742 or www.Experian.com;and Trans Union can be contacted at (800) 916-8800 or www.TransUnion.com. Be sure to prompt that you were denied credit when requested to do so.

Absent these exceptions, consumers are entitled to one free “annual credit report” per year. Credit scores are not included with any of the “free credit reports” provided by the national credit reporting agencies.

For your free annual credit report, contact the central source at 877-FACT-ACT (877-322-8228) or www.AnnualCreditReport.com. Follow the voice prompts and obtain your credit report for review.

When self-help or the “do-it-yourself” approach is not feasible and you decide to hire a CSO to restore your credit, be sure to check them out.  While the majority of credit repair clinics are scams, a few good ones do exist.  Consumers can check out a credit service organization through their state Attorney General, the Federal Trade Commission at www.ftc.gov or through the Better Business Bureau at www.BBB.org.

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The Credit Report with Bill Lewis airs live, Monday through Friday from 7am-8am with an encore presentation Saturday’s at 3pm on AM 740 WSBR.  Streaming audio is available at www.wsbrradio.com and on air participation is welcome at (888) 721-0074.

For daily updates on The Credit Report with Bill Lewis, you can join Bill’s 35,900 plus fans on Facebook at: www.facebook.com/thecreditreportwithbilllewis.

Guide to Credit Reports, Credit Scores


Attention is focused on new financial regulations enacted as part of the Dodd-Frank Act.

Earlier this year, the Federal Trade Commission announced final rules requiring creditors to provide consumers’ with a “risk-based pricing notice” when granting credit on less favorable terms than it provides other consumers.

To assist consumer understanding of these new rules, the U.S. Federal Reserve has unveiled an online guide to credit reports.

This straight-forward guide includes information on credit reports and credit scores, how they are utilized in credit granting decisions, unsolicited credit offers, credit repair and how to protect your personal information from fraud.

Released on Wednesday, the “Consumer’s Guide to Credit Reports and Credit Scores” is meant to complement consumer-protection laws that Congress enacted several years ago.

Under the Fair and Accurate Credit Transactions Act of 2003, lenders – starting in January – will be required to tell consumers when adverse information on their credit reports is going to result in higher rates and fees for mortgages, credit cards and other loans.

In today’s tough economy, a strong FICO (Fair Isaac) credit score is more important than ever. Studies show that approximately 78 percent of credit profiles in the United States contain some sort of error or omission materially impacting credit worthiness.

As creditors tend to offer favorable terms to consumers with good credit histories and more costly credit to those with poor credit histories, the guide is intended to assist them in disputing negative and/or inaccurate information prior to making an application for credit or employment.

Under the “risk-based pricing” rules, consumers hit with the less favorable credit terms can also obtain a free credit report to check its accuracy.

Under the Fair Credit Reporting Act, as modified by the Fair and Accurate Credit Transactions Act, consumers are entitled to a free copy of their credit report under a narrow set of circumstances.

If you have been denied credit, goods, benefits, services, insurance, and/or employment, the credit reporting agencies of Equifax, Experian and Trans Union are statutorily mandated to provide a copy free of charge.

Absent these exceptions, consumers are entitled to one free “annual credit report” per year. Credit scores are not included with any of the “free credit reports” provided by the national credit reporting agencies.

Equifax can be contacted at (800) 685-1111 or www.Equifax.com; Experian can be contacted at (888) 397-3742 or www.Experian.com; and Trans Union can be contacted at (800) 916-8800 or www.TransUnion.com.

Be sure to prompt that you were denied credit when requested to do so.

For your free annual credit report, contact the central source at 877-FACT-ACT (877-322-8228) or www.AnnualCreditReport.com. Follow the voice prompts and obtain your credit report for review.

Consumer advocates say additional work is needed to address concerns about credit reports and credit scores. “The main problem is really with credit reports – they’re just plagued with inaccuracies,” said National Consumer Law Center attorney Lauren Saunders. “It’s a nightmare for consumers to get anything fixed.”

Saunders said she is expecting the FTC and the new Consumer Financial Protection Bureau, the first agency to be charged with protecting consumers from abusive financial products, to take more action in addressing consumer concerns about credit reports.

Acting as a primer to the uneducated individual, the “Consumer’s Guide to Credit Reports and Credit Scores” advises what they should do if they find errors. In a three-step process, ordering credit reports and reviewing them for errors or inaccuracies; contacting the credit reporting agencies to enter a formal dispute; and, waiting for a response from the CRA’s and/or creditors is explained.

To learn more about the Consumer’s Guide to Credit Reports and Credit Scores, visit www.federalreserve.gov/creditreports. To review Bill Lewis’ entire consumer protection series at the Highlands Today, visit www.williamlewis.us.

Source:  The Credit Report with Bill Lewis – Highlands Today, an edition of the Tampa Tribune – Media General Group.  http://www2.highlandstoday.com/content/2010/nov/14/guide-credit-reports-credit-scores/

William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.

U.S. Supreme Court Rules Against Debt Collector


Debt collectors can no longer claim ignorance of the law as an excuse for violating the Fair Debt Collections Practices Act (FDCPA) while attempting to collect a debt.

On Wednesday, the United States Supreme Court handed down a ruling that severely restricts the “bona fide error” defense under the Fair Debt Collection Practices Act for debt collectors that send erroneous collection notices.

In a 7-2 ruling, the high court ruled that collection law firms could not use misinterpretations of the law in a “bona fide error” defense under the FDCPA.

In the matter of Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, Karen Jerman sued an Ohio law firm for violating the FDCPA when it attempted to foreclose on her home following payment on the mortgage. In its initial collection notice, the law firm sought written proof that Jerman paid her Countrywide Home Loans mortgage. Absent proof of payment or a written dispute within 30 days, the debt would be presumed valid. Jerman hired an attorney to meet the written requirement, although the FDCPA does not explicitly require consumers to submit disputes in writing.

Specializing in real estate and foreclosure law, Carlisle admitted that its initial validation notice intended dispute claims to be submitted in writing. After Jerman sued, the firm argued that it should not be held liable under the FDCPA because the violation was an unintentional or “bona fide error.” Carlisle defended the matter asserting a “safe harbor protection” stating they were unaware that “written” disputes were not required under the FDCPA.

Although consumers are often instructed by debt collectors to submit written disputes, no such language exists under the Fair Debt Collection Practices Act. In this instance, Carlisle argued that said “bona fide error” was the result of a clerical mistake.

The lower court sided with Jerman, noting that while Carlisle had violated the FDCPA, it was not liable under the Fair Debt Collection Practices Act for damages as the violation was unintentional or a “bona fide error.” An appeals court decision affirmed that ruling, sending the case to the United States Supreme Court.

In an opinion written for the 7-2 majority by Justice Sonya Sotomayor, the high court stated that “ignorance of the law will not excuse any person, either civilly or criminally.” Carlisle had argued that misinterpretations of the law were written into the Fair Debt Collection Practices Act. Sotomayor and the majority disagreed, noting that ignorance of the law was not explicitly written into the FDCPA.

Justice Anthony Kennedy, in a dissent joined by Justice Samuel Alito Jr., said the high court’s decision “aligns the judicial system with those who would use litigation to enrich themselves at the expense of attorneys who strictly follow and adhere to professional and ethical standards.”But Sotomayor spoke directly to that objection in the majority opinion, writing, “We do not foresee that our decision today will place unmanageable burdens on lawyers practicing in the debt collection industry.”

“Debt collectors should be treated like anyone else when violating a federal statute,” said Scott Kleiman, a foreclosure defense attorney with Kalis & Kleiman. “The Supreme Court decision keeps intact an important reason for debt collectors to abide by the law. While strong financial incentives encourage the collection of delinquent debts, continued unlawful behavior will not be excused and punished to the fullest extent of the law.”

The case originated when Carlisle – acting as a debt collector – sent a notice and foreclosure complaint to Jerman, requiring her to submit any dispute “in writing” within 30 days. The “in writing” language was included in the notice based upon legal authority from other jurisdictions. 

Although Countrywide Home Loans subsequently dismissed the foreclosure action, Jerman turned to the Icove Legal Group, a Cleveland-based public interest law firm that filed a class-action suit on behalf of her and other homeowners who received the erroneous notice. “This case will have a far-reaching impact within the debt collection industry as consumer laws in a number of states have ‘bona fide error’ statutes identical to the Fair Debt Collection Practices Act,” stated attorney Ed Icove, in applauding the 7-2 majority decision.

The entire United States Supreme Court opinion can be read at http://www.supremecourt.gov/opinions/09pdf/08-1200…

Source:  The Credit Report with Bill Lewis – Highlands Today, an edition of the Tampa Tribune. http://www2.highlandstoday.com/content/2010/apr/25/us-supreme-court-rules-against-debt-collector/columns-welewisjr/

William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.

Stop Annoying or Harassing Phone Calls


Are you receiving annoying or harassing phone calls from telemarketers or debt collectors? In these tough economic times, your telephone seems to ring more often. There are actions you can take to reduce the number of calls you receive. First, you must determine whether the caller is a telemarketer attempting to solicit a product or charity, or a debt collector attempting to collect a past due bill.

To stop most telemarketers from calling your home or cell phone, you must sign up through the Do Not Call Registry offered by the Federal Trade Commission. Registration can be made online at www.donotcall.gov or by calling 888-382-1222 from the number in which you seek to block.

The national Do Not Call Registry gives you an opportunity to restrict most telemarketing calls received on your home or cell number. Once you register, telemarketers covered by registry rules have up to 31 days to remove your phone number from their calling lists. Should the telemarketing calls continue, you have a right to file a complaint with the FTC.

The Federal Trade Commission says that “because of limitations in the jurisdiction of the FTC and FCC, calls from or on behalf of political organizations, charities, and telephone surveyors would still be permitted, as would calls from companies with which you have an existing business relationship, or those to whom you’ve provided express agreement in writing to receive their calls. However, if you ask a company with which you have an existing business relationship to place your number on its own do-not-call list, it must honor your request. You should keep a record of the date you make the request.”

Distinguished from the telemarketer, is the debt collector. If you owe a past-due bill, debt collectors have the right to call you – but not harass you. The Federal Trade Commission enforces the Fair Debt Collection Practices Act (FDCPA), a federal law that prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you.

There are many types of debts covered by the FDCPA. Personal, family, household debts, auto loans, medical bills, and even your mortgage are all protected under the law. The FDCPA, however, does not cover debts incurred to run or operate a business.

Some of the most common questions about debt collectors and consumer rights can be answered by visiting the Federal Trade Commission’s Web site at www.ftc.gov. Although the FTC will not normally intercede on behalf of an individual consumer, they act as a clearing house for complaints and have been known to initiate legal action against the most abusive collectors in the industry.

Should a Florida resident have a complaint about abusive debt collection tactics, they can file a complaint through the Florida Office of Financial Regulation (OFR), the state agency in charge of debt collectors, at www.flofr.com. In this instance, the OFR will open a file and forward the complaint to the offending agency.

If a debt collector violates the FDCPA, you can take legal action.

“You have the right to sue a collector in a state or federal court within one year from the date the law was violated,” the FTC said. “If you win, the judge can require the collector to pay you for any damages you can prove you suffered because of the illegal collection practices, like lost wages and medical bills. The judge can require the debt collector to pay you up to $1,000, even if you can’t prove that you suffered actual damages. You also can be reimbursed for your attorney’s fees and court costs. A group of people also may sue a debt collector as part of a class action lawsuit and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever amount is lower. Even if a debt collector violates the FDCPA in trying to collect a debt, the debt does not go away if you owe it.”

Whether you receive an annoying or harassing call from a telemarketer soliciting a product or charity, or a debt collector attempting to collect a debt, you can stop your phone from ringing by simply learning your rights.

William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.

http://www2.highlandstoday.com/content/2010/mar/21/lc-stop-annoying-or-harassing-phone-calls/columns-welewisjr/

Strategic Foreclosure 101 – Walking Away From Your Home


Many Americans are wondering how to deal with an underwater mortgage in these tough economic times.  Florida has been hit harder by the housing crisis than any other state in the nation. While some can afford to continue making payments on their home, many across the state have been pushed into foreclosure as home values have decreased anywhere from 15 to 55 percent or more.

Aside from a loan modification, we have all heard the terms foreclosure, short-sale, and deed-in-lieu of foreclosure. Each of these terms spells trouble for the homeowner – loss of home, reduced credit score, and negative social stigma. Although lenders in February filed fewer foreclosure actions in Florida compared to a year earlier, a new strategy is on the horizon, an idea coined “strategic foreclosure.”

If you purchased your home at the peak of the real estate market from 2004 to 2006, your value has substantially dropped. Although irrelevant to some borrowers as they can afford the payment and plan on residing in their home for a decade or more, others have simply stopped paying in the hope of forcing a short-sale or reduction in principal.

Should you walk away from your mortgage even if you can afford to pay? Millions of Americans are asking themselves that same question. Some borrowers feel they have a legal, moral, and ethical obligation to make payments notwithstanding a substantial drop in value. With almost half of the residential mortgages in Florida underwater, a growing number of individuals are contemplating walking away from the place they call home.

If you can resolve yourself to possible litigation and a lower credit score for several years, walking away may be a smart business decision. Right now, only a small percentage of borrowers are contemplating this technique. A recent study, though, found that approximately 32 percent of homeowners nationwide would consider walking away from their mortgage if the value of their home continues to decrease.

While “strategic foreclosure” makes perfect economic sense, many homeowners do not choose this course of action out of shame, guilt and fear. Underwater homeowners continue to stress over their mortgage payments to avoid the consequence of foreclosure and a perceived negative social stigma within the community. This is especially so when a borrower has the financial ability to pay.

Although almost 17.4 million homes nationwide are underwater, one must consider the adverse implications of “strategic foreclosure” before walking away. First, and foremost, is the loss of your home. Have you purchased the home across the street at half the amount of your current mortgage? Do you plan on renting? Are you aware that a “strategic foreclosure” will have the same impact on your credit score as a loan modification, judicial foreclosure, short-sale, or deed-in-lieu of foreclosure? Are you aware that you can be sued for any deficiency balance on your home?

“Borrowers who are underwater on their mortgages would be better off financially if they walked away from their homes,” says Scott Kleiman, a foreclosure defense attorney with Kalis & Kleiman. “They don’t because of their moral and ethical obligation to pay their mortgages.”

Borrowers who had a good credit history before they walk away through “strategic foreclosure” can usually rebuild their good name and reputation within a couple of years. In a recent study commissioned by the global information services company Experian, approximately 588,000 borrowers nationwide simply walked away from their homes in 2008. This is up 128 percent over 2007. From all indications, 2010 will be a banner year as the social stigma of foreclosure and simply walking away from your home will have dissolved amid the mortgage meltdown.

Just like former “Beverly Hills 90210” star Brian Austin Green – who has advanced a “strategic foreclosure” strategy in an effort to short-sale his $2 million Hollywood Hills home – you too can ride the wave of the future.

As a homeowner, you can afford to make your mortgage payments but are underwater to the point of no return. As a borrower, the American dream of owning a home is lost as it will maintain negative equity for a decade or more. “Strategic foreclosure” may be the first step toward a short-sale and walking away from yourhome.

http://www2.highlandstoday.com/content/2010/mar/14/lc-strategic-foreclosure-101/columns-welewisjr/

William E. Lewis Jr. & Associates is a solutions based professional consulting firm specializing in the discriminating individual, business or governmental entity. To learn more, tune into “The Credit Report with Bill Lewis,” a daily forum for business and financial news, politics, economic trends, and cutting edge issues on AM 1470 WWNN.

Identity Theft Protection is a Waste of Money


Are you one of the 13 million people who purchased “identity theft protection” in 2009?  If so, you wasted your money.  Identity theft protection companies push statistics like “almost 11 million adults were victims of identity theft in 2009” while prodding you to purchase a service that could cost up to $179.00 per year.  What they fail to advise is that identity theft protection does not cover account take-overs, the misuse of debits cards, or the establishment of personal identification (such as a driver license) in your name.

I am happy to report that almost all of the services provided by identity theft protection companies are available at little or no cost.  There is no reason to pay a monthly or yearly fee for something you can do yourself.

REVIEW YOUR CREDIT REPORT

By keeping close tabs on your credit report, you can identify signs of fraud early.  If you find an account not opened by you and have positively identified it as fraudulent, enter a dispute with the credit reporting agencies of Equifax, Experian and Trans Union.  You can obtain a free credit report at www.annualcreditreport.com or (877) 322-8228.  When you pay for identity theft protection, this free credit report is one of the “benefits” they tout.

PLACE A 90-DAY INITIAL FRAUD ALERT ON YOUR CREDIT REPORT

Call the credit reporting agencies and request a 90-day initial fraud alert on your credit report.  Not only will this trigger a free credit report but will advise potential creditors to investigate any application prior to issuing credit, goods, benefits, services, and/or employment.  Contact Equifax at (800) 525-6285, Experian at (888) 397-3742 and Trans Union at (800) 916-8800.  When you pay for identity theft protection, this fraud alert is one of the “benefits” they tout.

FREEZE YOUR CREDIT REPORT

Identity thieves and creditors are frozen in their tracks without access to your credit report as they will not have access to your credit history.  In Florida, you are entitled to temporarily “freeze” access to your credit profile without cost if you are over 65 years of age or are a verified victim of identity theft.  All others must pay $10.00.  Without access to your credit report, a responsible lender will not issue credit.  When you pay for identity theft protection, a credit report freeze is one of the “benefits” they tout.

STOP UNSOLICITED CREDIT CARD OFFERS

Are you tired of junk mail filling your mail box?  Opting out at www.optoutprescreen.com or (888) 5OPT-OUT will stop most unsolicited pre-approved applications and reduce the incidence of identity theft. Opting-Out refers to the process of removing your name from lists supplied by Equifax, Experian, TransUnion, and Innovis to be used for firm (preapproved / prescreened) offers of credit or insurance.  When paying for identity theft protection, opting out is one of the “benefits” they tout.

BUY A CROSS-CUT SHREDDER


“Dumpster diving” is still a very popular method of obtaining credit card applications and supporting documentation.  Purchase a cross-cut shredder that cuts vertically and horizontally, turning sensitive mail into confetti.  If you think a torn up credit card application will be rejected by a credit card company, you have not heard the story of how Chase approved a ripped up application.

While the Credit Card Act of 2009 has mandated a number of changes in relation to “free credit reports,” the area of identity theft protection is an area to watch.  Reduced fees in one area will only mean enhanced fees in another.  There is no reason to pay a monthly or yearly fee for something you can do yourself.

William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.

http://www2.highlandstoday.com/content/2010/mar/07/lc-identity-theft-protection-is-a-waste-of-money/columns-welewisjr/

A Truly Free Credit Report Without Cost or Fee


Have you ever been denied credit, goods, benefits, services, employment and/or insurance? Do you have a problem with “free” credit reports that are often bundled with credit scores and/or credit monitoring services and steep monthly fees? If so, you are not alone.

As part of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (commonly referred to as the Credit Card Act of 2009), advertisements for credit reports will soon require enhanced disclosures to help consumers avoid confusing “free” offers. These offers often require consumers to spend money on credit scores and/or credit monitoring while the “no-strings-attached” credit reports available through the central source at www.AnnualCreditReport.com are truly free to consumers once every 12 months

Effective April 1, 2010, the Federal Trade Commission’s Free Credit Reports Rule will require a prominent and enhanced disclosure in advertisements for “free” credit reports. Specifically, all Web sites offering “free” credit reports must include – across the top of any page that mentions them – a disclosure stating:

THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV You have the right to a free credit report from AnnualCreditReport.com or 877-322-8228, the only authorized source under federal law.

The Web site disclosure must include a clickable button to “Take me to the authorized source” at www.AnnualCreditReport.com as well as clickable links to the Federal Trade Commission Web site at www.ftc.gov.

Under recent legislation, the Credit Card Act of 2009 required the Federal Trade Commission to issue a rule to prevent deceptive marketing of “free” credit reports. Specifically, the Act requires that certain advertisements for “free” credit reports include prominent disclosures designed to prevent consumers from confusing these so-called “free” offers with the federally mandated “free” annual credit reports available through the “centralized source,” which is www.AnnualCreditReport.com.

The Federal Trade Commission proposed amending the rule in late 2009 and received more than a thousand comments from consumers, consumer reporting agencies, consumer report resellers, business and trade organizations, state attorneys general, consumer advocates, law firms, members of Congress, and academics. Most of these comments were in favor of change and enhanced disclosure requirements.

The amended rule also restricts practices that might mislead or confuse consumers as they attempt to obtain their federally mandated “free” annual credit report. The consumer reporting agencies of Equifax, Experian and TransUnion will now be required to delay the advertising of any products and/or services at the central source until the consumer has successfully obtained their “free” annual credit report.

Except for the wording of the disclosures for television and radio advertisements, which takes effect on Sept. 1, 2010, the new rule is effective April 1, 2010. The Federal Trade Commission will monitor and evaluate the effectiveness of the amended rule as well as the required disclosures and may consider additional changes as deemed necessary in the normal course of affairs.

Information contained in credit reports may determine whether a consumer can obtain credit, goods, benefits, services, employment and/or insurance. As such, it is important that consumers review their credit reports and correct any information that is inaccurate, erroneous, obsolete, and/or fraudulent. Under the Fair and Accurate Credit Transactions Act, Equifax, Experian and Trans Union are required to provide consumers with a “free” annual credit report once every 12 months, but only upon request. To learn more about their right to a “free” credit report under federal law, consumers are encouraged to visit the Federal Trade Commission website at http://www.ftc.gov/freereports.

William E. Lewis Jr., is a credit repair expert with Credit Restoration Consultants and host of “The Credit Report with Bill Lewis” on AM 1470 WWNN, a daily forum for business and financial news, politics, economic trends, and cutting edge issues.

http://www2.highlandstoday.com/content/2010/feb/28/lc-a-truly-free-credit-report-without-cost-or-fee/columns-welewisjr/