FTC Sends More Than $2.5 Million to Consumers Deceived by Credit Karma’s Allegedly False “Pre-Approved” Credit Offers
October 31, 2024 / Source: FTC
The Federal Trade Commission is sending more than $2.5 million to consumers who were misled by deceptive claims from credit services company Credit Karma.
The FTC took action against Credit Karma in 2022, alleging that the company told consumers they were “pre-approved” and had “90% odds” of approval to entice them to apply for credit card offers that, in many instances, they ultimately did not qualify for. Credit Karma agreed to an FTC order that required the company to stop making these types of deceptive claims and to pay money to compensate consumers who were harmed. Today, the FTC is sending this money to consumers.
The FTC is sending checks and PayPal payments to 50,994 consumers who filed a valid claim before the March 4, 2024 deadline. Consumers should cash their checks within 90 days, as indicated on their check, or redeem their PayPal payments within 30 days.
Consumers who have questions about their payment should contact the administrator, JND Legal Administration, at 866-848-0871 or visit the FTC’s website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.
The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $330 million in refunds to consumers across the country.
The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.