FEDERAL TRADE COMMISSION HOLDS A NEWS CONFERENCE ANNOUNCING THE CREDIT-REPORTING FRAUD CASE SETTLEMENT.

Original Source: Political Transcript Wire

FEDERAL TRADE COMMISSION HOLDS A NEWS CONFERENCE ANNOUNCING THE CREDIT-REPORTING FRAUD CASE SETTLEMENT

AUGUST 16, 2005

SPEAKER: LYDIA PARNES, DIRECTOR, BUREAU OF CONSUMER PROTECTION, FEDERAL TRADE COMMISSION

JOEL WINSTON, ASSOCIATE DIRECTOR, DIVISION OF FINANCIAL PRACTICES, FEDERAL TRADE COMMISSION

[*] PARNES: Good morning. I am pleased to announce that the Federal Trade Commission is taking a series of actions to protect consumers' rights when it comes to their credit reports.

Today, we are announcing a settlement with ConsumerInfo.com, a company that advertised free credit reports but charged consumers who accepted this offer for services they may not have wanted or even intended to buy.

We are also sending warning letters to operators of over 130 Web sites. These sites mimic the federally authorized site that allows consumers to get a free credit report every 12 months from each of the three national credit reporting companies.

And we are kicking off an educational initiative to let consumers know how to find that one authorized Web site.

Let me be clear: There is only one official online source for free yearly credit reports authorized by federal law, and it is Annualcreditreport.com.

Your credit report is one of your most critical personal financial documents. The information in your report determines not only whether you can get a loan but also how much you have to pay to borrow money. It's used to evaluate applications for insurance, rental housing and even employment.

Your credit report is also a tool to help you guard against identity theft. If identity thieves use your name, your Social Security number, or your credit card number to commit fraud, the delinquent account will show up on your credit report.

Consumers can check their reports periodically to spot and resolve problems. In fact, one reason Congress gave consumers the right to a free credit report was to make this task more convenient and accessible.

Our settlement with ConsumerInfo.com, an affiliate of the national consumer reporting company Experian, was filed yesterday in federal district court in California.

ConsumerInfo touted its "free credit report" promotion through an extensive national advertising campaign for the Web site Freecreditreport.com. The ads asked: "So what's the…