Deadline Approaching To Apply For $3 Million Credit Karma Settlement

In Phoenix, individuals who were denied a credit card despite receiving a pre-approved offer from Credit Karma have until March 4 to collect their share of a $3 million settlement.

Many individuals mistakenly believe that they will automatically receive a credit card if they see the term “pre-approved.” However, this is not always the case. The decision to approve a card applicant lies solely with the company that issues the card, and not with third parties such as Credit Karma.

According to the Federal Trade Commission, individuals who submitted applications may have caused a hard inquiry to appear on their credit reports. This could have resulted in unnecessary harm to their credit scores if their applications were rejected.

The FTC has said that the personal finance company is accused of misleading almost half a million consumers by falsely claiming they were “pre-approved” for a credit card or had a 90% chance of being approved. However, it was found that many of these consumers did not actually meet the qualifications.

The majority of impacted customers have been informed through email communication. In cases where an email address was not available, the agency has confirmed that they have been notified via mail.

In order to settle the charges, Credit Karma has paid $3 million, which will be utilized by the FTC to compensate consumers who have been negatively impacted by the company’s actions. Those who are eligible can submit their claims online by clicking on the following link:

If consumers require assistance with filing a claim or have inquiries, they can contact [email protected] or dial 866-848-0871. The deadline for submitting a claim is March 4, 2024.

According to the FTC’s initial complaint, Credit Karma issued a statement stating that they strongly disagree with the allegations made by the FTC. They also mentioned that the marketing terms in question are no longer being used. To read their complete statement, click here.