Credit Karma to Pay $3 Million to Consumers

Credit Karma to Pay $3 Million to Consumers
SEPTEMBER 1, 2022 ~ CAROLYN WARREN

Did you get tricked by Credit Karma into thinking you were pre-approved for a credit card? Did Credit Karma waste your time and cause you to have another hard inquiry on your credit report?
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The Federal Trade Commission doesn’t like trickery, nor does it like a big company taking advantage of consumers, and today, it has taken action!
The FTC alleges that the company used claims that consumers were “pre-approved” and had “90% odds” to entice them to apply for offers that, in many instances, they ultimately did not qualify for. 

The agency’s order requires the company to pay $3 million that will be sent to consumers who wasted time applying for these credit cards and to stop making these types of deceptive claims.

“Credit Karma’s false claims of ‘pre-approval’ cost consumers time and subjected them to unnecessary credit checks,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC will continue its crackdown on digital dark patterns that harm consumers and pollute online commerce.”

For detailed information see FTC website.

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