FTC Issues $2.5 Million Refunds to Credit Karma Users Over Deceptive Practices

Nearly 51,000 consumers are receiving compensation after Credit Karma's misleading 'pre-approved' credit offers led to denials.

The Federal Trade Commission is distributing refunds to 50,994 consumers misled by Credit Karma's deceptive credit offer claims.
Credit Karma was fined $3 million by the FTC in 2022 for falsely advertising 'pre-approved' credit offers to consumers.
The misleading claims, which affected consumers from February 2018 to April 2021, often resulted in credit application denials.
Consumers in the Carolinas are among those receiving part of the $2.5 million payout, with nearly 3,000 individuals affected.
Credit Karma has agreed to stop making these claims but disputes the FTC's allegations, stating it is not a lender and does not make lending decisions.