More details: Found hereMore than 50,000 Credit Karma customers will soon receive checks or PayPal payments as part of a $2.5 million Federal Trade Commission payout.
The FTC first took action in 2020 against Credit Karma, the credit-monitoring and finance app acquired in 2020 by financial software giant Intuit. The FTC accused the service of misleading consumers with promises of credit card pre-approvals.
According to the FTC, Credit Karma misled consumers by falsely claiming they were "pre-approved" for certain credit card offers that they did not actually qualify for.
Credit Karma ultimately agreed to stop making those claims and to pay $3 million to compensate customers who the FTC said were deceived into wasting time and potentially harming their credit scores. On Thursday, the FTC announced that more than $2.5 million would be distributed among 50,994 customers.
The FTC alleged that Credit Karma buried disclaimers in fine print or falsely claimed consumers had "90% odds" of approval. It also said that the company was aware of the deception, citing training materials that allegedly told new employees how to deal with the common customer complaint of being denied for a "pre-approved" offer.
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