Managing their credits has always been one of the issues people in US have been working at for some time now. As a step towards this, there has been emphasis on checking the credit report and ensuring there are no errors in the credit history. People are encouraged to check their credit reports to make sure they are not paying excess due to errors in the credit history. To facilitate this practice, there has been news about companies in US offer “free” credit report to customers. These companies have now received a warning from the federal authorities here.

As per recent developments, 18 websites have been served notice for offering “free” credit reports to their customers. The notice mentions that the companies must let their customers know that the reports are made available by government agencies. The companies are also being told to inform that the government agencies issuing the reports have no strings attached to it which is the case with the companies providing the information.

As pointed out by Federal Trade Commission, the companies offer credit reports only when the customers purchases one of the services offered by the company. This defies the term “free” which they make claims of and comes as a condition to receive their credit report.

The companies are being asked to offer full disclosure to the customers so that it assures greater transparency to the public. In case companies fail to do so, they could be fined as much as $3,500 per violation. This comes as relief to the customers who usually fall prey to the claims made by the companies and find themselves in obligations due to hidden clauses.

Resident of Canada can however receive their credit reports for free from Equifax and TransUnion, the nation’s credit card companies. While the companies will be providing the credit reports to customers when requested, they are under no obligation to provide the credit score to the customers. The credit reports will be delivered by mail or will also be made available online for the benefit of customers.

The customers will have to provide two documents as identification when they seek the free credit report from the companies. Many people have begun taking advantage of this facility.

People in US are now being encouraged to check their reports at least annually to better manage their credits and finances. Though time consuming, a quick look at the credit report goes a long way in better financial planning.

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