Credit Karma To Compensate Customers With $3 Million Settlement For False Claims

Credit Karma, a personal finance company, will be compensating its customers with $3 million in settlement for false claims. However, the Federal Trade Commission (FTC) has not confirmed yet when and how much will be received.

Credit Karma Credit Card Offers [Photo: The Krazy Coupon Lady]

According to Xie, when the customers applied for the credit card offers they were put through unnecessary credit checks that lowered their credit scores. The false claims consumed their time and they became vulnerable to the hard inquiries on their credit reports.

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FTC Ordered A Settlement

On the Federal Trade Commission (FTC) website, they announced their initial complaints to Credit Karma in September 2022. Credit Karma has disputed the FTC’s allegations, but they have decided to settle for an agreement to focus on helping their customers with their financial needs.

On January 23, the FTC has finalized an order for Credit Karma to compensate its customers. Eligible are those who have applied for the credit cards and loans they were denied to receive. According to the settlement, the Credit Karma will pay a total amount of $3 million to the FTC who in turn will issue the compensation to the customers affected. To date, the FTC has not confirmed how many customers will qualify, how much they each can receive, nor when the compensation will arrive.

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