FTC launches credit report band ads

WASHINGTON - You have probably seen the TV commercials advertising "free credit reports" featuring three, scruffy musicians singing jingles about debt deriding their dreams. Now the Federal Trade Commission has rolled out its own commercial featuring three, scruffy musicians to direct people to its free credit report.

The Federal Trade Commission said that it has received complaints from consumers who thought they were ordering their free annual credit report, but instead paid hidden fees or agreed to unwanted services. The agency states that AnnualCreditReport.com is the only authorized source to get your free annual credit report under federal law.

The Fair Credit Reporting Act guarantees consumers access to a free credit report from each of the three nationwide reporting agencies -- Experian, Equifax, and TransUnion -- every twelve months. In order to raise awareness for AnnualCreditReport.com , the FTC has produced two online commercials and hopes that they will go viral.

In "Apartment," one of the FTC ads, the musicians sing, "Other sites may turn your head; they say they're free, don't be misled. Once you're in their tangled web, they'll sell you something else instead."

The FTC commercial spoofs the ads for FreeCreditReport.com , which is owned by Experian. Those commercials feature young men in various scenes including a cramped apartment, a beat-up old car, and a pirate-themed, seafood restaurant. The ads have been in circulation for years.

The New York Times reported that the FTC is targeting the FreeCreditReport.com ads because it believes that company uses the reports as a lure for a $14.95 monthly service that alerts subscribers to important changes in their credit status.

The Times also reported that 9 million people are spending a total of $650 million to $700 million annually on Experian's credit reporting services, according to Carter Malloy, a Stephens Inc. analyst.

To help keep consumers from ending up on imposter sites or falling for promotions for free credit reports that aren’t really free, the FTC is seeking public comment on proposed rules, The Washington Post's columnist Michelle Singletary reported .

Watch the FTC Annual Credit Report ads .