Experian Faces Class Action Lawsuit over FreeCreditReport.com Ads

Erica Possin deserves a parade, or at least a round of applause. Erica, a college student, is standing up to the mammoth credit bureau Experian as the lead plaintiff in a class action lawsuit filed against FreeCreditReport.com (a/k/a Experian).  The suit claims that Experian knowingly and deliberately advertised free credit reports that are not actually free!  Experian's credit reports are only available if you agree to let them charge you $14.95 a month for credit monitoring services. The trouble is, Experian doesn't disclose that tidbit of information in their ads. 

Erica, not unlike the many consumers I have heard from over the years, believed that the catchy little jingles such as "F-R-E-E spells FREE, Baby" meant the credit report was free.  The trouble is, it isn't.  By law, we are all entitled to a free annual credit report, but freecreditreport.com isn't the place to get THAT one.

Erica Possin and her attorney Balestriere Fariello intend to stop all this confusion, or as they put it: unfair competition, false advertising, willful deception, fraud, negligence and unjust enrichment. They are seeking damages, restitution and an injunction in what appears to be a collective shaking of their legal index finger pointing squarely at Experian's deep pockets saying:  Enough is enough. No more screwing consumers.  And many consumers, myself included, say whoohoo -it's about time!
 
When an advertiser tells you that you are getting something for free, it doesn't mean the same thing as buy this and we will give you this one free. Even supermarkets advertise BOGO (buy one, get one) in big, bold letters, informing consumers that they must first buy something in order to get something for free. What's wrong with a giant company like Experian that it couldn't do the same?
 
There is a huge difference between ordering a free credit report and finding yourself duped into a monthly $14.95 credit monitoring fee.  But perhaps Experian doesn't understand that.  You'd think they'd get the message since they've been the subject of two earlier FTC enforcement actions -both revolving around the marketing of their "free credit reports". It looks to many of us that Experian simply tweaks their jingle and continues on with business as usual. (See FTC press releases from 2005 and 2007)
 
In spite of the thousands of confused and complaining consumers who ended up with multiple credit card charges for their "free" credit report, Experian denies any wrong doing. Of course! They continue to claim that their intentions are honorable. Of course! And recently, a spokeswoman for Experian defended the company against the allegations that they used deceptive practices in advertising this particular type of credit report, stating:
 

"FreeCreditReport.com is a trusted partner for millions of Americans who want more than a free credit report. We make it very clear to consumers visiting the site that the free credit report and score is part of enrollment in the Triple Advantage Credit Monitoring and that if they don't cancel their membership within the seven-day trial period, they will be billed monthly," stated the Experian spokeswoman. "While it wouldn't be appropriate to speculate what the FTC's final rules will be, we can tell you we remain committed to clearly and conspicuously disclosing to consumers that the free report we offer is not the free annual credit file disclosure provided by federal law."

 
As this scenario continues to play out, hopefully more and more consumers will learn that F-R-E-E doesn't always spell free.  Maybe now Experian will finally stop claiming it does. Only time will tell. In the mean time, enjoy an FTC spoof video that points out the legitimate place to obtain your really free credit report!