For some time now, a number of companies have offered consumers free credit reports. ACCESS has provided numerous warnings about these services because their privacy policies allow them to resell, or repurpose your private data. We have always told consumers that if they want to get access to their credit report, they were better off purchasing it directly from the credit repositories; Equifax, Trans Union and Experian.

Beginning today, consumers in 13 western states are eligible to receive a free credit report directly from each of the credit repositories annually. By this time next year, all American consumers will be eligible to annually receive a free credit report. This right was given to us in late 2003 when Congress passed the Fair and Accurate Credit Transactions Act, or FACTA.

Unfortunately, while Congress’ intent may have been good, the same cannot be said of the credit repositories. They have already discovered numerous ways to make money from the new law, all at the expense of the consumers.

In what is apparently a blatent attempt to deceive consumers, the repositories have setup a new website which allows individuals to request their credit report online. While this may be convenient, consumers who use the site are actually signing away their privacy rights much as they do when they use other free credit report websites.

(NOTE: When you try to reach the website linked above they have locked us from referring you to their site.  All you have to do is remove the subdirectories from the website name and return.)

The new site’s privacy policy, which is about four pages long, has a clause that allows them to share your data with just about anyone.

"Any of the information collected from or about you, as described above, may be disclosed to any of the nationwide consumer reporting companies."

Now if they had just stated "may be disclosed to Experian, Equifax and TransUnion only," and then STOPPED.  We wouldn't of had any problems with the privacy statement. But it really concerns us when they are disclosing any information they collect about you.  One can only guess what information they may be collecting. Are they including the information they get off of your credit report?

Not only that, but they did not fully disclosed who is included in the "any of the nationwide consumer reporting companies."  Wouldn't it had been shorted to say "Experian, Equifax and TransUnion?"  So whoever these "any" are, the privacy statement goes on to say they will share your personal information with their affiliates. And heaven only knows who all their affiliates are. 

The Privacy Policy continues (emphasis added by ACCESS):

Central Source, or the nationwide consumer credit reporting companies, may also disclose any of the information collected, as described above, to affiliates of nationwide consumer credit reporting companies, which are companies that are related to one of them by common ownership or affiliated with one of them by common control, or to the associated consumer reporting companies who utilize a nationwide consumer reporting company system and that may have information about you.

The information collected, as described above, may also be received by third parties providing services to Central Source in connection with processing your requests for free credit file disclosures or other services (for instance, the entity hosting our website)."

They should be able to list who those third parties are, as well as, list all the "other services" they are referring to. Don't they know?  Is the list really that long?  What a bunch of non-commital statements.

The 2003 revisions to the FCRA allows for affiliate sharing, however, it also requires the CRA's to clearly and conspicuously disclosed that they will be sharing your most personal and private information.  To hide this fact, buried in a 4 page privacy statement is neither clear or conspicuous.  The FCRA also requires them to provide consumers a simple method to opt-out of sharing.  Of which the site fails to comply. We believe an online site, especially one delivering credit reports, should provide an online opt-out feature. Don't you?

Consumers who want to take advantage of the new law and maintain their privacy at the same time are better served by calling 877-322-8228. According to the recorded information on this line, information provided via the phone will only be used for the purpose of fulfilling a credit report request.

Before calling, you should also know that if you want to see your credit scores from each of the repositories, you will have to purchase these separately. In fact, you can expect the repositories will attempt to sell you credit monitoring services, and your credit scores, regardless of the way that you attempt to exercise your rights under FCRA or FACTA.