FreeCreditReport.com's band-on-the-run search

Have a band that's as annoying as FreeCreditReport.com's singing pirate? You're in luck.

The controversial credit service is on the hunt for a new crew of wannabe musicians to sing along to what has basically been a classic example of misleading advertising. As previously reported, owner Experian had to spill the beans that their side business is only free if consumers enroll in the then $14.95-a-month credit-monitoring service and then cancel it within a week.

In response to the new Federal Trade Commission rules, FreeCreditReport.com is now asking consumers to shell out $1 for credit reports.

Yep, the so-called "free" report now costs a buck. But, it's still not free. Oddly, the service claims that the $1-per-report charge will be donated to charity.

The site's ubiquitous TV ads, in case you haven't seen them, feature slackers singing in their shabby apartments or waiting tables in pirate costumes. If only they had used FreeCreditReport.com, they wouldn't be in such a financial mess.

The controversy is that FreeCreditReport.com diverts customers away from the free government mandated site located at www.AnnualCreditReport.com.

Due to the legal issues, it now has a disclosure on its home page saying it's not affiliated with the annual free credit report program. This disclosure is in fine print on the side of the home page, on a subdued background.

Click here for details.

FreeCreditReport.com's ads must come clean

For those who have had enough of the FreeCreditReport.com singing pirate, the ship is sinking for the site's misleading advertisements.

As of September, owner Experian will have to spill the beans that their side business is only free if consumers enroll in a $14.95-a-month credit-monitoring service and then cancel it within a week.

The site's ubiquitous TV ads, in case you haven't seen them, feature slackers singing in their shabby apartments or waiting tables in pirate costumes. If only they had used FreeCreditReport.com, they wouldn't be in such a financial mess.

The controversy is that FreeCreditReport.com diverts customers away from the free government mandated site located at www.AnnualCreditReport.com.

It also has a Web site name that implies the report is free. Contrary to its misleading URL, FreeCreditReport.com charges a credit-monitoring service that costs $14.95 a month, automatically taken from consumers' credit cards.

Experian, the company that owns FreeCreditReport.com, has until September of this year to clean up the ads for its site, while other credit card companies had from May 2009 to February 22, 2010. The credit report company has already paid $1.25 million to settle charges for misleading consumers who ended up having to pay a monthly subscription fee.

Due to the legal issues, it now has a disclosure on its home page saying it's not affiliated with the annual free credit report program. This disclosure is in fine print on the side of the home page, on a subdued background.

Click here for details.

High price of a free credit report

Looking for a free credit report? Interested in FreeCreditReport.com? Think again.

The site's TV ads feature slackers singing of their life problems and are appealing to a younger crowd. It also has a Web site name that implies the report is free. Little do people know FreeCreditReport.com charges a credit-monitoring service that costs $14.95 a month, automatically taken from your credit card.

Kris Steele remembers these commercials, especially the lyrics that spell out F-R-E-E. Anxious about his credit, he went to the site and signed up for the report. A few months later, he checked his statements and found the Web site was charging him $14.95 a month. Steele doesn't recall seeing anything about this fee and feels duped by the sites faulty name and advertising.

The problem with FreeCreditReport.com is in its advertising. Due to legal issues in the past, it now has a disclosure on its home page saying it's not affiliated with the annual free credit report program. This disclosure is in fine print on the side of the home page, on a subdued background.

This is leaving consumer groups concerned.

The three major credit bureaus, Experian, Equifax and TransUnion are required to offer reports through the authorized AnnualCreditReport.com but the bureaus also make money from their own credit reports. The only authorized site for free credit reports is AnnualCreditReport.com.

To see the NY Times report, click here.