New laws under the Credit Card Accountability, Responsibility and Disclosure Act and intended to protect credit card users took effect on February 2. On April 22 a second portion of the act is slated to take effect that stresses the fact that American consumers are entitled to a free copies of their credit report each year from each of the three credit reporting agencies each year. The new laws were passed by the Federal Trade Commission in response to complaints that some credit monitoring companies were using deceptive practices in making consumers believe that they must sign on to their programs and pay a fee to see their credit report. Under the law companies providing credit monitoring must inform consumers that they can view their credit report free of charge without contracting the services of the company.
American consumers have been focusing on getting out of debt, staying out of debt, and saving more since the beginning of the great recession. Keeping track of their credit report is very important for anyone who are attempting to get out of debt or trying to remain in good credit standing. Receiving a copy of the report each year can help consumers improve their credit score by allowing them to see what areas need to be improved, correct errors in the report, and disclosing who has made inquiries about their credit standing. An improved credit score makes it easier to get credit and build financial security.
Free annual credit reports are available at annualcreditreport.com or by calling 877-322-8228.
