[FTC] Angry FTC Orders Credit Karma To Halt Deceptive Pre-Approved Credit Offers. If you’re shopping for a credit card or loan, the only words sweeter than “You’re approved!” may be, “You’re pre-approved!” But according to the FTC, many people who got “pre-approved” credit offers from Credit Karma weren’t approved for credit and, as a result, wasted time applying and saw their credit scores drop when their applications were denied.
An FTC lawsuit alleges that Credit Karma deceived people by claiming — falsely — that they had been “pre-approved” or had “90% odds” of approval for credit cards or loans offered by banks and lenders that used Credit Karma to promote their financial products.
Under a settlement, Credit Karma will pay $3 million to reimburse people who responded to its allegedly deceptive offers but were ultimately denied credit.
The order also prohibits Credit Karma from making misleading claims that people have been or are likely to be approved for credit or loans.
[USATODAY] The Federal Trade Commission ordered consumer technology company Credit Karma Thursday to pay $3 million to redress false statements that made consumers believe they were preapproved for credit offers, a misrepresentation the FTC says wasted consumers' time and hurt credit scores. The $3 million will be sent to consumers who were harmed by the company’s actions from February 2018 to April 2021, according to a complaint from the FTC. Credit Karma on Thursday said it disagrees with the FTC's allegations "about marketing terms that aren’t even in use anymore" for a small subset of its offers but reached this agreement "to avoid disruption to our mission."
Discover more from Your Assignment Editor
Subscribe to get the latest posts sent to your email.
