FTC Announces Claims Process for Consumers Harmed by Credit Karma “Pre-Approved” Offers for Which They Were Denied (2024)

FAQs

FTC Announces Claims Process for Consumers Harmed by Credit Karma “Pre-Approved” Offers for Which They Were Denied? ›

The Federal Trade Commission is launching a claims process for consumers harmed by Credit Karma's practice of misrepresenting that consumers were “pre-approved” for credit card offers. According to the FTC, many consumers were denied, costing them time and subjecting them to unnecessary credit checks.

In January 2023, Credit Karma paid money to settle charges brought by the FTC. The FTC alleged that many people who got “pre-approved” credit offers from Credit Karma were not approved. As a result, they wasted time applying and sometimes saw their credit scores drop when their applications were denied.

How much money will I get? That depends on how many people file claims, according to the FTC. However, if the total number of people estimated to be eligible were to file claims, that would result in payments of about $6 each.

The Federal Trade Commission says Credit Karma misled applicants and may have lowered their credit scores. The Federal Trade Commission has started the compensation process in a $3 million settlement with Credit Karma, which the agency alleges deceived customers about being approved for credit cards.

You can file a claim online at ftc.gov/CreditKarma. Those with questions can email info@CreditKarmaSettlement.com or call (866) 848-0871, the agency said. A Credit Karma spokesperson said the organization disagrees with the FTC's allegations and it reached the agreement to put the allegations behind it.

Most FTC cases do not require you to file a claim. FTC court orders typically require the defendants to provide a list of customers, along with their contact information, and how much they paid. We use this information to send refunds.

The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those credit bureaus.

Credit Karma is a personal finance company that is owned by Intuit. It provides free access to credit scores and other credit services as well as personalized recommendations for credit cards, loans, and insurance.

Credit Karma goes the extra mile when it comes to the safe-keeping of our members' personal information. We use 128-bit or higher encryption to protect during the transmission of data to our site and encrypt data at rest.

How accurate are the credit scores it shares? Is there anything I need to be aware of before signing up for this service? A: Credit Karma is a legitimate company; however, for a variety of reasons, its scores may vary greatly from the number your lender will share with you when it checks your credit.

How can I file a complaint against Credit Karma? ›

Consumers who were affected or have questions can go to www.ftc.gov/CreditKarma, to file a claim, or you can email info@CreditKarmaSettlement.com or call 866-848-0871 with questions.

Common reasons for filing a credit dispute

Reasons why someone would dispute items on their credit report include: Inaccurate information: This could include wrong balances, incorrect payment history, account status, or credit limit. It could also be due to a creditor accidentally entering the wrong information.

The claimants must have an account with the Credit One Bank. They have to submit details that clearly state the concern they had, financial statements, current income, personal & family details, identity cards, and more. For more precise information, kindly contact the officials of the bank.

A Karma Guarantee that you see on a credit card offer on Credit Karma means that if you are declined by the applicable lending partner for that credit card, you can receive a payment from Credit Karma (“Cards Karma Guarantee”). It is not a guarantee of approval for any credit card offer.

Generally, settlement funds and damages received from a lawsuit are taxable income according to the IRS.

Credit card debt settlement is when a consumer submits a lump-sum payment for the majority of what they owe in return for the company that owns the debt forgiving part of the outstanding balance as well as certain fees and finance charges. A debt settlement agreement is one way to escape serious credit card debt.

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