Civil Plaintiff
Credit Karma Forced to Pay $3M After Being Accused of Using Claims to ‘Trick’ Consumers
The Federal Trade Commission has taken action against credit services company Credit Karma for misrepresenting pre-approval statuses to consumers.
The FTC alleges that the company used claims that consumers were “pre-approved” and had “90% odds” to entice them to apply for credit offers that, in many instances, they ultimately did not qualify for, wasting their time and hurting their credit scores in the process.
Credit Karma has been ordered to stop making these types of deceptive claims and pay $3 million to the FTC, which will be sent back to consumers who went through further application processes.
