FTC sends $2.5 million to Credit Karma customers

Credit Karma customers who were deceived by nan in installments service's company's alleged mendacious "pre-approved" offers will get $2.5 cardinal from nan Federal Trade Commission (FTC).

The FTC connected Thursday announced that it is sending payments to astir 51,000 consumers who revenge a valid declare pinch nan committee earlier a March deadline.

It first took action against Credit Karma in 2022, aft claiming that astir one-third of immoderate customers who were "pre-approved" for in installments by nan institution were successful truth denied. The FTC claimed Credit Karma pre-approved customers to entice them to use for offers that they were improbable to suffice for. It allegedly utilized acheronian patterns — website aliases app designs that tin mislead consumers — to do so. 

Credit Karma, which provides users pinch devices to show their in installments scores and reports, told immoderate users that they had "90% odds" of being approved for in installments products, according to nan FTC. Such practices wasted consumers' clip and could person damaged their in installments scores, nan agency said. 

Credit Karma has agreed to an FTC bid requiring it to extremity making these types of claims, successful summation to compensating those harmed by nan practice.

"We fundamentally disagree pinch allegations nan FTC makes successful their complaint, which subordinate solely to statements we ceased making years ago. Any accusation that Credit Karma rejected consumers applying for in installments cards is simply incorrect, arsenic Credit Karma is not a lender and does not make lending decisions," nan institution said successful a connection to CBS MoneyWatch. 

"We reached this statement to put nan matter down america truthful we tin support our attraction connected helping our members find nan financial products that are correct for them," nan institution said.