WASHINGTON, D.C. — The Federal Trade Commission (FTC) has distributed more than $2.5 million to consumers misled by the credit services company Credit Karma. The decision follows an enforcement action where Credit Karma was accused of using deceptive marketing practices to entice consumers into applying for credit cards.
The FTC’s 2022 allegation centered on Credit Karma’s misleading use of terms like “pre-approved” and “90% odds” in their promotional materials, which falsely assured consumers of a high likelihood of credit card approval. Many consumers, lured by these seemingly favorable odds, applied for credit cards only to find they were not actually qualified. These deceptive practices led to the FTC’s intervention, resulting in an agreement with Credit Karma to cease such claims and compensate affected consumers.
The refund distribution process involved 50,994 consumers who submitted valid claims by the March 4, 2024, deadline. The FTC has initiated the sending of checks and PayPal payments to these consumers, advising them to cash their checks within 90 days or to redeem their PayPal payments within 30 days, as specified.
Consumers who have questions about the refund process are encouraged to contact JND Legal Administration, the appointed refund administrator, at 866-848-0871. Additionally, further information can be accessed through the FTC’s website, which provides answers to frequently asked questions about the refunds. The Commission emphasizes that there are no fees or requirements to provide personal financial information to receive these refunds.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.