The Federal Trade Commission (FTC) is preparing to send a total of $1.9 million to victims of an alleged free credit report scam.
The FTC says 42,849 victims will receive their share of the funds, stemming from a lawsuit that the agency filed against Credit Bureau Center back in 2017.
According to the FTC, Credit Bureau Center misled consumers into obtaining credit reports by impersonating property owners, enrolling them in a $29.94 per month credit monitoring service without clear consent.
“Credit Bureau Center, formerly known as MyScore LLC, impersonated property owners and offered tours for properties they were not authorized to offer for rent, if consumers first obtained credit reports and scores from their websites.
These sites claimed to provide “free” credit reports and scores, but then enrolled consumers in a credit monitoring service with monthly charges of $29.94.
Many consumers didn’t realize they were enrolled until they noticed unexpected charges on their bank or credit card statements, sometimes after several billing cycles.”
After a legal battle and a Supreme Court ruling that limited the FTC’s ability to obtain monetary relief, the court reimposed penalties in 2021 under a different legal authority.
Victims are set to automatically receive checks in the mail that must be cashed within 90 days.
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