{"id":124,"date":"2024-12-20T02:16:39","date_gmt":"2024-12-20T02:16:39","guid":{"rendered":"https:\/\/www.soscip.org\/us\/?p=124"},"modified":"2024-12-20T02:16:40","modified_gmt":"2024-12-20T02:16:40","slug":"credit-karma-lawsuit-2024-million-in-payments","status":"publish","type":"post","link":"https:\/\/www.soscip.org\/us\/credit-karma-lawsuit-2024-million-in-payments\/","title":{"rendered":"Credit Karma Lawsuit 2024: FTC Issues $2.5 Million in Payments to Victims of Misleading Pre-Approval Claims"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The Federal Trade Commission (FTC) has begun distributing 50,994 payments, totaling over $2.5 million, to individuals who filed valid claims in connection with deceptive \u201cpre-approved\u201d credit offers from Credit Karma. This marks the resolution of a settlement addressing claims that Credit Karma misled users, causing them to waste time and suffer potential credit score damage.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Background: The Case Against Credit Karma<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/credit-karma-lawsuit-2024-million-in-payments\/\" data-type=\"link\" data-id=\"https:\/\/www.soscip.org\/us\/credit-karma-lawsuit-2024-million-in-payments\/\">Credit Karma<\/a>, a popular financial service platform, advertised &#8220;pre-approved&#8221; credit card offers to consumers, creating the impression that these offers were guaranteed. However, the FTC found that a significant portion of these individuals were not eligible for the advertised credit products. When their applications were denied, consumers reported not only wasted time but also a negative impact on their credit scores due to hard inquiries triggered by the application process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>FTC\u2019s Actions and Settlement Terms<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">In its complaint, the FTC alleged that Credit Karma used deceptive tactics to encourage users to apply for credit cards they were unlikely to qualify for. The settlement required Credit Karma to:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Cease Misleading Claims<\/strong>: Credit Karma agreed to stop advertising credit offers as \u201cpre-approved\u201d unless such claims were verifiable.<\/li>\n\n\n\n<li><strong>Monetary Compensation<\/strong>: The company paid $2.5 million to compensate affected consumers.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The FTC used this settlement amount to reimburse individuals who filed claims by the designated deadline.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/old-navy-gap-face-new-class-action-lawsuit\/\" data-type=\"post\" data-id=\"12409\">Old Navy &amp; Gap Face New Class-Action Lawsuit 2024 Over \u201cFalse Discounts\u201d<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/westjet-baggage-fee-settlement-2024-claim-12-5m\/\" data-type=\"post\" data-id=\"12445\">WestJet Baggage Fee Settlement Lawsuit 2024: How to Claim Your Share of the $12.5 Million<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Details About the Payments<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Distribution Method<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Claimants will receive payments based on their chosen preference during the claims process:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Check<\/strong>: Checks must be cashed within <strong>90 days<\/strong> of the issue date.<\/li>\n\n\n\n<li><strong>PayPal<\/strong>: Digital payments via PayPal must be accepted within <strong>30 days<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Recipients are encouraged to act promptly to avoid losing access to their compensation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Payment Amounts<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The exact payment each individual receives depends on the number of valid claims filed. With over $2.5 million distributed among 50,994 claimants, the average payout is approximately $49 per person.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/canadians-claim-375-rogers-yahoo-class-action\/\" data-type=\"post\" data-id=\"11495\">How Canadians Can Claim Up to $375 from the Rogers &amp; Yahoo Class Action Settlement<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/rogers-yahoo-canada-data-breach-settlement-2024\/\" data-type=\"post\" data-id=\"11265\">Rogers Yahoo Canada Data Breach Settlement 2024: Claim Deadline, Eligibility, and How to Apply<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/scotiabank-mortgage-calculator-for-smart-homebuyers\/\" data-type=\"post\" data-id=\"5778\">Scotiabank National Class Action Lawsuit 2024: Over Massive Service Outage Impacting Customers Nationwide<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/scotiabank-class-action-100-compensation-customer\/\" data-type=\"post\" data-id=\"12311\">Scotiabank Faces Class Action Lawsuit $100 Compensation for Each Customer Affected by Recent Massive Outage<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/scotiabank-vacation-pay-class-action-lawsuit\/\" data-type=\"post\" data-id=\"133\">Scotiabank Vacation Pay Class Action Lawsuit 2024: Did They Underpay You?<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Next Steps for Recipients<\/strong><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>If You Receive a Check<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Review the check carefully to ensure it\u2019s legitimate.<\/li>\n\n\n\n<li>Deposit or cash it promptly to avoid missing the 90-day deadline.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>If You Receive a PayPal Payment<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Check your email or PayPal account for the payment notification.<\/li>\n\n\n\n<li>Accept the payment within 30 days, or it will be returned to the FTC.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Report Issues<\/strong>: If you encounter problems with your payment, contact the FTC immediately for assistance.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why This Settlement Matters<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This case serves as a reminder of the importance of transparency in financial advertising. The FTC\u2019s actions highlight the agency\u2019s commitment to holding companies accountable for misleading consumers and ensuring that affected individuals receive fair compensation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, the settlement emphasizes the need for consumers to remain vigilant when engaging with credit offers. Understanding the terms and verifying claims can help avoid similar situations in the future.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/iphone-class-action-canada-claim-settlement\/\" data-type=\"post\" data-id=\"419\">iPhone Class Action Canada 2024: Claim Your Settlement Before Deadline<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/kia-hyundai-theft-class-action-lawsuit-settlement\/\" data-type=\"post\" data-id=\"296\">KIA-Hyundai Theft Class Action Lawsuit Settlement 2024: Eligibility and Affected Models<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/facebook-class-action-settlement-canada\/\" data-type=\"post\" data-id=\"396\">Facebook Class Action Settlement (Canada) &#8211; Who is Eligible &amp; How to Claim?<br><\/a><br><a href=\"https:\/\/www.soscip.org\/capital-one-bank-class-action-settlement-payout\/\">Capital One Bank Class Action Settlement 2024 Payout Per Person, Eligibility &amp; Payment Date<\/a><br><br><a href=\"https:\/\/www.soscip.org\/verizon-class-action-lawsuit-settlement-payout\/\">Verizon Class Action Lawsuit Settlement 2024: Customers Could Get Up to $100 Payout<\/a><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">The FTC\u2019s distribution of $2.5 million to Credit Karma victims is a significant step toward justice for those misled by deceptive practices. If you were part of this claims process, ensure you access your compensation promptly. For others, this case underscores the importance of scrutinizing financial offers to avoid unnecessary risks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For updated information or to report issues, visit the FTC\u2019s official website.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Trade Commission (FTC) has begun distributing 50,994 payments, totaling over $2.5 million, to individuals who filed valid claims in connection with deceptive \u201cpre-approved\u201d credit offers from Credit Karma. This marks the resolution of a settlement addressing claims that Credit Karma misled users, causing them to waste time and suffer potential credit score damage.&nbsp;<a class=\"read-more\" href=\"https:\/\/www.soscip.org\/us\/credit-karma-lawsuit-2024-million-in-payments\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":126,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/comments?post=124"}],"version-history":[{"count":3,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/124\/revisions"}],"predecessor-version":[{"id":1189,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/124\/revisions\/1189"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media\/126"}],"wp:attachment":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media?parent=124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/categories?post=124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/tags?post=124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}