{"id":43296,"date":"2023-12-05T12:35:24","date_gmt":"2023-12-05T17:35:24","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/ftc-announces-claims-process-for-consumers-harmed-by-credit-karma-pre-approved-offers-for-which-they-were-denied\/"},"modified":"2023-12-05T12:35:24","modified_gmt":"2023-12-05T17:35:24","slug":"ftc-announces-claims-process-for-consumers-harmed-by-credit-karma-pre-approved-offers-for-which-they-were-denied","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/ftc-announces-claims-process-for-consumers-harmed-by-credit-karma-pre-approved-offers-for-which-they-were-denied\/","title":{"rendered":"FTC Announces Claims Process for Consumers Harmed by Credit Karma \u201cPre-Approved\u201d Offers for Which They Were Denied"},"content":{"rendered":"
The Federal Trade Commission is launching a claims process for consumers harmed by Credit Karma\u2019s practice of misrepresenting that consumers were \u201cpre-approved\u201d for credit card offers. According to the FTC, many consumers were denied, costing them time and subjecting them to unnecessary credit checks.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The agency is sending notices to 497,425 consumers who may be eligible for a payment. Consumers can apply if they were offered a pre-approved credit card from Credit Karma but were denied when they applied. Most of the consumers will get an email, but about 4,000 people who don\u2019t have an email address on file will get a notice in the mail.<\/span><\/span> Eligible consumers can file a claim online at <\/span><\/span>www.ftc.gov\/CreditKarma<\/span><\/span><\/a>.<\/span><\/span><\/span><\/span><\/span><\/p>\n Consumers who have questions or need help filing a claim can email <\/span><\/span>info@CreditKarmaSettlement.com<\/span><\/span><\/a> or call 866-848-0871.<\/span><\/span> The deadline to file a claim is March 4, 2024.<\/span><\/span><\/span><\/span><\/span><\/p>\n In September 2022<\/a>, the FTC announced an enforcement action against Credit Karma, alleging that the company used claims that consumers were \u201cpre-approved\u201d for a credit card or had \u201c90% odds\u201d of approval to entice them to apply for offers that, in many instances, they did not qualify for. Consumers who applied incurred a hard inquiry on their credit reports, and, if they were denied, may have damaged their credit scores unnecessarily. <\/span><\/span><\/p>\n Credit Karma paid $3 million to settle the charges, which the FTC will use to pay claims to consumers harmed by the company\u2019s actions. The FTC received roughly thirty complaints involving Credit Karma\u2019s \u201cpre-approved\u201d offers in the five years prior to announcing its action against the company. But within five months of that announcement, the agency received nearly 900 more such complaints. This is consistent with the FTC\u2019s experience that consumer complaints represent the tip of the iceberg compared to the number of consumers harmed.<\/span><\/span><\/p>\n