“Free credit scores” sounds good, right? But what if you signed up for “free credit scores,” then found out you were enrolled in a credit monitoring program that costs $29.95 per month? Not so good. That’s what the FTC says happened with a company called One Technologies, Inc. Now the company has agreed to settle the FTC’s charges that it misled consumers by advertising “free credit scores” but failing to tell them that they would be enrolled in a credit monitoring program for a monthly fee.
One Technologies, Inc. offered people “free” online access to their credit scores through at least fifty websites, including freescore360.com, freescoreonline.com , and scorescense.com. But according to the FTC, the company didn’t clearly inform people that once they got their score, they would pay $29.95 per month for a credit monitoring program. You could only get out of that monthly fee by calling to cancel. Some people had to call multiple times. Others were denied refunds. One Technologies, Inc. will pay $22 million to compensate its customers and must get their consent before billing them. Also, it must provide the customers with an easy way to cancel.
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- What can you do if you become victim of a deceptive marketing practice?
- Where can you get your free credit report at least once every year?
- Ask students to obtain their credit reports from Experian, TransUnion, and Equifax.
- Ask students to search the Internet for “free credit scores” and summarize their findings.