Consumer fraud
Complaint
g brown
Country: United States
I inquired into what I thought was an advertised FREE credit report. The next day I found a bill for $39.95 from CIC *CE Credit Experts. Apparently a single reporting agency report was “Free”, but if you wanted to view all three reporting services, there was a $39.99 charge. I never fall for these types of scams, but this one was so hidden I totally missed the hook, so please beware of their deceptive business practices. After a quick internet search I found pages of scam complaints against these scumbags.
When contacting the company with the phone number provided by my bank, CIC refused to back out the charge, telling me in their fine print I acknowledged the charge. This is out and out fraud and I only wish there was some legal recourse to get my money back! PLEASE BE WARNED - NEVER, NEVER USE THIS SERVICE!!! My bank explained there is little they can do at this point to recover the lost monies.
When contacting the company with the phone number provided by my bank, CIC refused to back out the charge, telling me in their fine print I acknowledged the charge. This is out and out fraud and I only wish there was some legal recourse to get my money back! PLEASE BE WARNED - NEVER, NEVER USE THIS SERVICE!!! My bank explained there is little they can do at this point to recover the lost monies.
Comments
These companies often fail to respond to unhappy "accidental customers" who just call, since you are likely to do no more than that. They set out to get your money, and they succeeded. Since that was their plan, they will hang on as long as they think they can get away with it.
These companies rely on advertising "free" reports, with fine print hidden to base their charges on. If they hide their terms, that is an indication that they intended from the start to defraud you.
File a dispute of all fraudulent charges with your bank, IN WRITING, within 60 days of the statement date showing the disputed charge. This invokes your FCBA or Reg E dispute rights under federal law. Your bank must investigate your dispute, in a timely manner, or if they fail to do so for CC charges, under FCBA your bank must refund up to $50 of the disputed amount, regardless of whether it was even owed. They have no such obligation if you just call them on the phone. Always reduce your disputes to writing send to your bank certified return receipt requested.
BBB shows them as a member. Many of these companies have been sanctioned by FTC or state AGs, for exactly this type of deceptive advertising, and some of them join BBB to deal with consumer disputes before they become regulatory disputes.
This company's BBB report shows that FTC sued them, reached a settlement prohibiting them from doing the same sort of "business practices" you found them doing, and then FTC reached a second stipulated judgement and permanent injunction due to further problems.
That should make FTC responsive to new complaints, and the company responsive to any complaints put in writing, since they are probably required to maintain auditable records of all disputes for review by FTC. PUT IT IN WRITING, to BBB, so there is a paper trail that the company got it.
Their BBB statistics show a pattern of consumer disputes, that are often resolved after a BBB complaint. The types of disputes are consistent with your claim of deceptive advertising and fraudulent charges, so it is likely they will cave if you dispute quickly. They MUST respond to BBB disputes to remain a member.
http://www.labbb.org/BBBWeb/Forms/Business/Co ... panyID=13062929
ConsumerInfo.com
CIC Credit Monitor SVC
P.O. Box 19729
Irvine, CA 92623
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No. of Cmpl Type of Response
3605 Making a full refund, as the consumer requested
558 Making a partial refund
1083 Agreeing to perform according to their contract
23 Refusing to make an adjustment
30 Refuse to adjust, relying on terms of agreement
0 Unanswered
5 Unassigned
5304 Total
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Complaint Experience
Some complainants allege that they cancelled their membership but continue to be billed. In some cases, the customers said that they were not aware that they agreed to a membership program and as such believed the charges were not authorized. A few customers reported not receiving their credit reports online.
The company responds to some complaints by issuing full or partial refunds, sending the free credit report, and canceling memberships when appropriate. The company explains that the customers agreed to their terms of service when they signed up. In some cases where the customer did not receive their report via the internet, the company explained that they have to be sure of the customers' identity before providing the credit reports online.
Government Actions
Agency: Federal Trade Commission (FTC)Los Angeles
Description: On August 15, 2005, the FTC filed suit against the company alleging that the company deceptively marketed "free credit reports" by not adequately disclosing that consumers automatically would be signed up for a credit monitoring service and charged $79.95 if they didn't cancel within 30 days, in violation of federal law. The suit also alleges that the Defendant's practice of causing the annual $79.95 charges to be assessed for payment without the consumers' express, informed consent causes, is likely to cause, or has caused, substantial injury to consumers that is not reasonably avoidable by consumers themselves and is not outweighed by countervailing benefits to consumers or competition. In addition, the suit claims that from December 1, 2004 to at least March of 2005, Defendant failed to disclose or to disclose adequately in their advertisements or on their websites that the "free" credit reports they were offering were not associated with the annual free credit report program pursuant to the FACT Act, but rather a commercial promotion, and that consumers cannot obtain their statutorily-mandated free report through the company's websites.
To settle the suit, the Defendants, without admission as to the allegations in the complaint, agreed in part, to be permanetly enjoined from: misrepresenting expressly or by implication that consumers can obtain a free product, program, or service at no cost or obligation, or misrepresenting the amount of any charge or fee. The Defandants must also disclose in their advertising the fees associated with the service, its terms, and that under federal law you have the right to receive a free credit report available at www.annualcreditreport.com and that they are not affilliated with the annual free credit program. The Defendants were also ordered to provide refunds to any consumers who qualify and enrolled between November 1, 2000 and September 15, 2003. In addition, the Defendants are to pay $950,000 as disgorgement of profits and any refund checks that are not cashed as to the consumers who qualify are also to be remitted to the US Treasury.
Date of Action: 8/15/2005
Agency: Federal Trade Commission (FTC)Washington
Description: On January 8, 2007 Consumerinfo.com entered into a Stipulated Judgment and agreed to an Order for Permanent Injunction to settle charges that the company's "free credit report" offer failed to explicitly disclose that subscribers would be automatically signed up into a paid credit-monitoring program.
The FTC charged that ConsumerInfo.com had engaged in deceptive marketing practices through requiring credit card information for consumers to purchase their "free credit report," then billing them $79.95 annually unless they opted out within 30 days. ConsumerInfo.com was also charged with violating the terms of a previous settlement with the FTC over similar practices in August 2005. The previous settlement required the company to pay $950,000 in penalties, as well as requirements for prohibiting the company from engaging in deceptive business practices.
The 2007 Order requires that the company more clearly disclose the terms and conditions of their services. The company agreed to pay $300,000 in Civil penalties, and is prohibited from advertising any of its services as related to the free annual credit reports consumers can receive each year from the major credit bureaus, under the terms of the Fair Credit Reporting Act. The Order was entered without admission of guilt or wrongdoing by the company and was for settlement purposes only. Upon entry the Order was finalized.
Date of Action: 1/8/2007
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