Approximately 500,000 credit report receivers might be eligible for compensation in connection with misleading credit card offers from Credit Karma, according to the Federal Trade Commission (FTC) in a press release on December 5.
The settlement follows a 2022 FTC investigation initiated after receiving reports that Credit Karma, a subsidiary of Intuit, misrepresented customers’ approval chances for credit card offers by falsely claiming they were “pre-approved” or had “90% odds” of approval. As a result, thousands of applicants faced rejections, which wasted their time and adversely affected their credit scores due to hard inquiries, the FTC noted.
Credit Karma denied allegations the FTC made in its complaint, but paid $3 million to settle the charges.
The FTC revealed plans to distribute notifications to 497,425 individuals potentially eligible for compensation. Those who believe they qualify should look into their emails for this notification. About 4,000 individuals without an email on file will receive letters by mail according to the commission.
The amount each individual receives will depend on the total number of valid claims submitted.
Eligible recipients of the notice can file their claims online at www.ftc.gov/CreditKarma. Claims must be submitted before the deadline of March 4, 2024.
If you haven’t received a notice and you think you should be eligible, reach out for more information by emailing info@CreditKarmaSettlement.com or calling (866) 848-0871.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
