Tuesday, August 16, 2005

Unchecked Power Demonstrated Once Again.

As noted here previously, “freecreditreport.com” has been a scam from the get-go, luring consumers into alleged credit scoring for free, all the while only setting people up to find out they aren’t getting what they really need unless they pay. Worse yet, even setting them up into paying for a $79.95 per year charge (in advance, of course) if they didn't realize they had to cancel the bogus "service" within 30 days.

Well leave it to the FTC to belatedly go after the schemers and finally make it look like they’re doing their best to protect the millions of victims of the credit scoring cabal.

Under the guise of things like “consumerinfo.com” and its subsidiaries Qspace and Ispace, none other than data broker Experian had found yet another way to fleece consumers.

But once again, the toothless FTC is getting zip compared to the damage done and business goes on as usual.

And like most FTC announcements, this one plays to the supposed diligence of the FTC:

"Consumers paid the price for ordering free credit reports from freecreditreport.com," said Lydia Parnes, director of the FTC's Bureau of Consumer Protection. "It's unfair and deceptive to promise consumers something for free and then trick them into paying for products they didn't want in the first place."

So why the paltry $950K fine? And why did it take more than three years to bring the practice to a halt?

Well, you can only chalk another one up to the unmitigated power Experian has in the halls of Washington.

On this side of the Pecos, letting the perps get away with it this long and with a meaningless fine would get Ms. Parnes fired and then some.

The Honorable Judge Roy Bean.

1 comment:

emily said...
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