The Federal Trade Commission (FTC) is sending out nearly $1.9 million to people who were scammed by a fake “free credit report” service. Over 42,000 victims will get a share of the money.
How the Scam Worked
The scam, run by a company called Credit Bureau Center (formerly MyScore LLC), tricked people into paying for a credit monitoring service. They pretended to be property owners offering tours, but only if you first got a credit report from their website. The website claimed to offer free credit reports and scores, but secretly signed people up for a $29.94 monthly service. Many victims didn’t realize they were being charged until they saw the extra charges on their bank or credit card statements.
Legal Battle and Payouts
The FTC sued Credit Bureau Center in 2017. After a legal battle and a Supreme Court decision, the court finally ordered the company to pay penalties in 2021. Victims will automatically receive checks in the mail. They have 90 days to cash them.
