More than $2.5M in refunds sent to ‘misled’ Credit Karma users, feds say. What to know
Some Credit Karma users can soon expect a refund, according to the Federal Trade Commission.
The commission said it’s returning more than $2.5 million to users who were tricked by false “pre-approved” credit offers from the personal finance company.
“The FTC is sending checks and PayPal payments to 50,994 consumers who filed a valid claim before the March 4, 2024 deadline,” the FTC said Thursday, Oct. 31.
Consumers are advised to cash their checks within 90 days or redeem PayPal payments within 30 days.
A 2022 complaint accused Credit Karma of misleading consumers into thinking they had “90% odds” of getting approved, coaxing them to apply for credit offers they ultimately didn’t qualify for, the FTC said.
The commission found that nearly a third of users who applied for the “pre-approved” offers were denied.
Credit Karma agreed to a $3 million settlement, but refuted the FTC’s claims.
“We fundamentally disagree with the FTC’s allegations about marketing terms that aren’t even in use anymore, but ultimately we reached this agreement to avoid disruption to our mission ... ” Susannah Wright, Chief Legal Officer at Credit Karma, said in a 2023 statement.
This story was originally published November 1, 2024 at 11:29 AM with the headline "More than $2.5M in refunds sent to ‘misled’ Credit Karma users, feds say. What to know."