If You Were Denied A Credit Karma Offer, You Could Get Paid
Have you applied for a credit card offer through Credit Karma recently and been told you were “pre-approved”? If you were denied, Credit Karma could owe you some money. According to the Federal Trade Commission (FTC), it’s a part of a settlement Credit Karma has agreed to pay out to customers like you.
The FTC said in a news release that nearly half a million people could be eligible for settlement payments. The agency says payments are tied to a 2022 investigation the FTC launched after getting reports that Credit Karma misled customers. Credit Karma is accused of falsely claiming customers were “pre-approved” or had “90% odds” of being approved for credit card offers. When in fact, thousands of applicants were rejected. The FTC says that cost customers time and also damaged customers’ credit scores because of the hard inquiries to their credit reports.
Meanwhile, Credit Karma disagrees with the allegations and findings by the FTC. In a statement to Nexstar, Credit Karma said it “fundamentally disagree[s]” with the allegations the FTC made in its complaint. Credit Karma says the FTC was referring to statements that it stopped making quite some time ago.
And that any notion that Credit Karma turned down consumers who were applying for credit cards is blatantly wrong. Credit Karma says it is not a lender and does not make lending decisions.
Nonetheless, Credit Karma has agreed to pay $3 million to settle the charges. The FTC says the money will go to customers who were harmed by the company’s actions.
How to know if you’ll receive any money?
Look for a notice in your email from the FTC stating you may be in line for a payment. Some people who do not have an email, will receive notice in the mail.
If you do receive a notice, you can file your claim online . You have to apply before the March 4, 2024 deadline.
If you think you should be eligible but haven’t seen a notice from the FTC, you can email info@CreditKarmaSettlement.com or call (866) 848-0871.
