SIOUX FALLS, S.D. (KELO AM) - Two of the three credit reporting services have agreed to a $23 million settlement against claims that customers were convinced to buy an overvalued subscription to their customer services.
Jessie Schmidt with the Better Business Bureau says Equifax and TransUnion will also change their business practices.
The U.S. Consumer Financial Protection Bureau said the payments bring to an end charges that TransUnion and Equifax lured customers into buying credit services advertised as free or costing only $1, but which could cost more than $200 a year.
Experian did not offer subscriptions and wasn't part of the settlement.
Schmidt says we're entitled to one free credit report a year from each of the three services. She advises getting one report every four months from each of the three companies.
Schmidt says you don't need a monthly update of your credit score.
But she says you do need a favorable credit score to buy a car, a house or any reason to borrow money.
You can go to any of the three service's websites or send a request for your credit score by mail.