You see the ads everywhere on the net - Free Credit Report. The problem is that consumers who sign up for their free reports often find themselves enrolled in a continuing program, one that charges fees for all subsequent services.

Recently Consumerinfo.com doing business as Experian Consumer Direct agreed to pay $300,000 to settle charges by the FTC that the company’s ads for its “free credit report” offer failed to disclose adequately the fact that consumers who signed up would be automatically enrolled in a credit-monitoring program and be charged $79.95.

The company had already paid $950,000 in August of 2005 to settle similar charges. Consumers were asked for credit card numbers to establish their accounts and automatically billed the $79.95 annual membership fee after a 3-month trial period. The FTC charges that following this settlement, the company continued to run deceptive ads about “free” reports.

Again, every consumer is entitled to one free credit report annually. These can be obtained by going to www.annualcreditreport.com.

You received an email that appears to come from a legitimate business offering to supply a free credit report to help you monitor and prevent identity theft. Don’t be fooled.

The email could very well be one of many scam emails circulating over the last two years. The recipient is directed to a site to fill out an application form.

The application form contains all the basic information you might expect to provide in order to request a credit report. The problem is that these sites are run by scammers.

The scammers now have everything they want. Instead of protecting yourself against identity theft you have just provided the scammers with all the information they need to make you a victim of it. They can now open accounts, get credit cards in your name and ruin your credit.

Everyone is entitled to one free credit report per year. According to the FTC, the only website authorized for this purpose is www.annualcreditreport.com.

The GAO (General Accounting Office) has issued a report on excessive credit card fees and credit dislosure practices.

The report finds that the disclosure statements are still nearly incomprehensible to the average consumer. Penalty fees have more than doubled in the last ten years. Also of concern were hidden fees and transaction fees, such as those for making a payment by phone.

As I cautioned in an earlier post you need to read the fine print on your disclosure statement. The disturbing news is that these statements are purposely written above the average reading level of the intended consumers.

Read more at Consumer News Service.

September is the one year anniversary for yearly free credit reports for consumers. Phased in across the country, all areas were eligible by September of 2005.

All consumers are entitled to a free copy of their credit report once every 12 months form each of the three national credit reporting agencies - Equifax, TransUnion and Experian.

To obtain your free credit reports, you can order them online at www.annualcreditreport.com, call toll free at 1-877-322-8228 or obtain an Annual Credit Report Request Form at www.ftc.gov. Once completed, mail the request form to Annual Credit Report Service, P O Box 105281, Atlanta, GA 30348-5281.

Knowing what is on your credit report is the first and most important step to taking control of your personal finances. Be sure to take advantage of this opportunity to get the information you need to repair your credit rating and to discover and correct mistakes that your credit report may contain.