HT2534 Why is the app store asking for payment information to download a free app?

I've never had a problem downloading free apps. Now, all of a sudden, I can't download a free app without going through the purchasing step, which I am not because it's free?! Anyone else having this problem?

You are required to provide credit card details to download apps be it free or paid.
Nothing will be deducted from your credit card if the app is free.
There will be a authorizing hold of US$1.00 to verify your account information. It will be credited back to your account later.

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