Credit Karma money: FTC orders company to pay users $3M for 'false claims'

What is Credit Karma? Company allows people to monitor credit information for free

Monday, September 5, 2022
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Some Credit Karma users could be seeing part of a $3 million payout after the FTC ordered the company to pay for making 'false claims.'

CHICAGO -- Some Credit Karma users could be seeing part of a $3 million payout.

The Federal Trade Commission has ordered the company to pay users after falsely claiming they were pre-approved for credit cards, CNN reported.

FTC officials said nearly one-third of people who applied for those offers were denied, and that misrepresentation harmed their credit scores.

This happened between 2018 and 2021.

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Credit Karma said it disagrees with the FTC but is settling to avoid disruptions.

It's unclear how many consumers were impacted or how those affected will be able to claim the money.

Credit Karma allows people to monitor their credit information for free, but it gets paid when customers are approved for loans or credit cards.