YOUR ‘FREE’ CREDIT REPORT

Watch out for the word “free.” There may be a catch. That’s what has happened with the federal government’s plan to let every American obtain free copies every year of their credit reports on the Internet from the three major credit reporting agencies. For Mainers and residents of some other Northeastern states, the free online service started Thursday.

But before the federal online program got cranked up, credit-rating companies and various other financial services outfits grabbed all the conceivable Internet addresses for free credit reports and used them as come-ons to promote related services costing up to $34.99 a month. And if you get involved with one of these for-profit offers, you could get e-mailed advertising for the indefinite future.

Some of these high-pressure offers promise a “free” credit score – but only if you agree to pay a monthly fee for monthly credit checks and alerts. These credit scores are based entirely on the credit reports. Consumers should focus on the credit reports. If the report is good, the score will be good.

This aggressive marketing meant that the Federal Trade Commission, which manages the free annual credit report system, had to settle for an official Web site, annualcreditreport.com, which could not include the word “free.” In ordering reports from that official site, applicants should be careful not to be enticed into fairly costly services that they may not need.

Fortunately, Mainers can get also get their credit reports without giving out their e-mail addresses and subjecting themselves to unwelcome promotions. Just order the request forms from the Maine Office of Consumer Credit Regulation, either through its Internet site at www.Mainecreditreg.org, by phone at 1-800-332-8529, or by U.S. mail at 35 State House Station, Augusta 04333-0035.

The three principal credit rating agencies, Equifax, Experian and TransUnion, asked the FTC if they could offer other for-pay products in connection with providing the free annual reports. The FTC did not prohibit this practice, but it stipulated that such offers could not interfere with providing the free reports. William N, Lund, director of Maine’s Office of Consumer Credit Regulation, notes that this is a fine line, not easily defined.

Mr. Lund says also that California lets its residents get free credit scores, as well as credit reports, once a year. Federal law prohibits other states from following that course.

So, the best advice is to take advantage of the truly free offer, but watch out for scams that could cost you a lot of money.