Editorials

Most people likely have seen messages offering “free” credit reports that may seem harmless enough, but a word of advice for those inclined to respond is to be sure to check the source and intent of such overtures.

Texas Attorney General Greg Abbott offers that advice, pointing out many Internet sites claim to offer free annual credit reports, but only one Web site is actually authorized to do so.

In 2003 Congress passed the Fair Credit Reporting Act granting every American a right to look at their credit report once a year at no charge.

Because of that law, Abbott noted, all Texans may request a free annual copy of their credit report from each of the nationwide consumer credit reporting companies — Equifax, Experian and TransUnion. AnnualCreditReport.com is the official site created by the three major credit bureaus to help consumers obtain their free credit report.

After the FCRA was enacted, online marketers launched Web sites that purport to offer “free” credit reports, Abbott said, but rarely follow through on their promises.

Many alternative sites require users to purchase other products or services, and place unnecessary conditions on credit report requests.

Abbott cites an example of one Internet marketer requiring users to enroll in costly credit monitoring services, which can only be canceled online after exactly 23 days. Another Web-based service automatically enrolls users in a discount travel service program.

A more sinister development led the Federal Trade Commission to issue warnings about “free credit report” sites that actually are designed to capture customers’ personal information, which the scammers either sell or use to commit identity theft.

Texans are cautioned to be wary of Internet offers promising “free credit scores” or “free credit monitoring.” Neither is part of the government-mandated free annual credit report program, Abbott said.

“The bottom line is no one has to purchase their free credit report,” Abbott said. “Before ordering a credit report from an unauthorized online marketer, Texans should be sure to read the fine print carefully.”

Through AnnualCreditReport.com Texans may order one, two or all three credit bureau reports at the same time, or they may consider staggering their requests. Because the three major credit bureaus get their information from different sources, the information in a report from one bureau may not reflect all, or the same, information in reports from the other two bureaus, the attorney general explained.

Ordering a credit report from a different bureau every four months, he added, may be a good way to spot any errors or unauthorized account activity.

A periodic review of credit reports can help consumers guard against identity theft. Identity thieves may use a consumer’s personal information to open new credit card accounts or commit other financial crimes.

When the thieves fail to pay the bills, the delinquent account shows up on the victims’ credit report. Inaccurate credit history, if left uncorrected, may affect a creditor’s ability to get credit, insurance or even a job.

If a problem is discovered on a credit report both the credit bureau and the creditor should be notified in writing. Credit bureaus must investigate items in question unless they consider the dispute frivolous. In addition, they must forward all data about the inaccuracy to the creditor that reported the disputed information.

Creditors then must review relevant information and report results to the credit bureau. If the disputed information is found to be inaccurate, all three credit bureaus must be notified so information in the consumer’s file can be corrected.

Incidents of any credit reporting agency or creditor refusing to correct inaccurate information in a file should be reported to the Texas Attorney General’s Office and the Federal Trade Commission.

It might seem like a little trouble to check one’s credit reports and take precautions against identity theft, but those relative small steps could be highly valuable in avoiding scammer’s snares.

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