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FreeScore.com: Not Exactly Free

Freescore.com has just begun advertising (with Ben Stein as its spokesman) that you can get credit scores from all three credit bureaus free:

freescore

You will note that nowhere in this main panel above on their website  is there ANY disclosure about cost and obligation. “When you try FreeScore” does not communicate anything. And there is not even an asterisk.

*MOUSE PRINT:

*A refundable $1.00 processing fee applies.

And only when you decide to sign up for the “free” scores, do you learn the rest of the details:

*MOUSE PRINT:

Simply click “View Scores” on the next page to activate your trial membership in FreeScore and claim your Free 3-in-1 Credit Report and Triple Credit Score! To activate your trial membership in FreeScore, you will be charged/debited a $1.00 refundable processing fee and then you can immediately take advantage of the exciting savings FreeScore has to offer! After your 7-day FREE trial period it’s just $29.95 per month for FreeScore. Remember, you can call FreeScore toll-free at 1-800-316-8824 within the first 7 days to cancel, and you will not be charged/debited. Also, remember to ask for a refund of your $1 processing fee.

As with similar offers for credit monitoring services, you only get your “free” scores by signing up for a trial membership in a credit report access program for nearly $30 a month — a new high. (These things used to cost $79 a year, but without any credit scores.)

Their TV commercial is no better, and arguably worse:

freescore2

*MOUSE PRINT:   For only about one and half seconds is a disclaimer on the screen in the tiniest of fonts that says “scores and reports free with trial membership in FreeScore.” There is no disclosure at all about a refundable $1 processing charge.

Trans Union is the provider of this service, and one would have thought the lessons that Experian learned (after the FTC went after them) would be apparent: you should be upfront on the website and say to get your “free” scores you must join a trial program for $1 and that it will cost you money if you fail to cancel within X period of time.

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Net IQ Tests Can be Draining (of Your Wallet)

iqtestIt seems innocent enough — an invitation to take an IQ test. 

They are advertised on Facebook, in Yahoo!, and on other sites.  Sometimes they even make you think that friends have already taken the test, and you are being challenged to beat them.  Other times you may get pop-ups saying that other people in your town have taken the test (they use your IP address to figure out your location).

If you click on the ad, you might be taken to a webpage that looks like this:

iqtesthome

There are ten questions to the test, and at the end you are asked to enter your cell phone number so the results can be texted to you.  At worst, you might think that you will be charged 10 or 20 cents for receiving a text message.

iqtestphone

What you don’t see when you take the test is a hidden footnote.

*MOUSE PRINT:

Summary terms:  This is an auto renewing subscription service that will continue until canceled anytime by texting STOP to short code 25692. Available to users over 18 for $9.99 per month charged on your wireless account or deducted from your prepaid balance for 3 alerts per week on T-Mobile, AT&T, Verizon Wireless, Virgin Mobile USA, Cellular One, Cincinnati Bell, Centennial Wireless, U.S. Cellular, and Unicel 5 alerts per week). For $4.99 per month for 2 alerts per week on Cricket. For Mind Quiz support: text HELP to 25692, email mailto:25692@sms-helpdesk.comor call 18002357105 for automated help or call 18004166129 for a live operator. Standard messaging charges apply for Verizon Wireless, All other carriers, standard messaging and/or data rates may apply. Your phone must have text messaging capability. You must be the owner of this device or have permission from the owner. By signing up for this service and entering your personal PIN Code delivered to the cell phone number supplied by you on this website, you acknowledge that you are agreeing to thee full Terms of Use. Click here for full Terms & Conditions.

Translation: By filling in your cell number and entering your PIN number, you are agreeing to a MONTHLY $9.99 charge for who knows what.

What makes this offer so deceptive, is the manner in which the disclosure is made.  It is not merely a footnote.  It is hidden on the page.  You think you are looking at the entire IQ test screen when taking the test because of all the blank space below the test box. There is no disclosure visible.  In fact you have to scroll down beyond the blank space to find the disclaimer.  See sample (but don’t click).

Don’t fall for a scam like this.

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Ally Bank — We Hide Nothing?

Have you ever heard of Ally Bank? Probably not, but it is being advertised very heavily these days.

What is your bank trying to sneak by you?, they ask. Fine print? Asterisks? Not Ally. They promise “no sneaky disclaimers ever.”

But who is Ally Bank? Clicking “the Ally Story” link on their website, reveals who they really are:

*MOUSE PRINT:

“We are Ally Bank. Built on the foundation of GMAC Financial Services”

When asked to explain that somewhat flowery language, Ally’s customer service department responded, in part:

Ally Bank was formally known as GMAC Bank. The launch of our new name was on 5/15/2009.

Ally Bank is a separate company from General Motors (GM). Ally Bank is a part of GMAC Financial Services, which became an independent company in late 2006. GM holds an equity stake in GMAC, but is reducing its ownership equity due to the federal requirements of GMAC becoming a Bank Holding Company. GMAC provides financing to automotive dealers and customers, but they do not directly finance GM. The companies have separate banking relationships.

So this is really GMAC Bank with a new name. So why did they change their name away from GMAC Bank?

” — We do not own gmac.com, and we do not own the “GMAC” name as it is leased from GM.

— We decided to invest in building a new brand, since we are going to increase our marketing of the Bank to raise retail deposits.

— Our research showed that GMAC brand recognition was largely limited to existing and past customers. We wanted a bank brand name that would have potential for eventual global growth.

— Perhaps most importantly, to launch a unique online bank with a unique customer offering, we felt that it was important to create a truly unique brand – one with a name that means something to the customer and speaks to our business philosophy of working with customers to make money, not against them.” –Manager, Global Marketing Communications

Or, just maybe people were reluctant to deposit money with what was better known as an auto finance company with the name “General Motors” in its title?

In any event, they have savings products that pay higher rates of interest than almost anybody. Their savings account currently pays 2.05% (down from 2.25% just last week), and they have a money market checking account paying 1.90% (limit six checks/withdrawals a month). The latter account also comes with an ATM card, and they will reimburse other banks’ ATM fees for the first four transactions a month, up to $6 a month. And, of course, individual accounts are insured by the FDIC for up to $250,000.