Refunds target misleading credit offers promising high odds of approval.
The Federal Trade Commission (FTC) is distributing more than $2.5 million to nearly 51,000 consumers misled by Credit Karma’s deceptive credit card “pre-approval” and “90% odds” of approval claims. In 2022, the FTC took action against Credit Karma for promoting misleading claims about consumers’ approval odds, often giving them false assurances of pre-qualification.
Under the FTC order, Credit Karma agreed to cease these practices and compensate affected consumers. Refunds will be sent through checks or PayPal, and recipients must redeem them promptly to avoid expiration.
This refund program is part of the FTC’s mission to protect consumers from deceptive practices, providing $330 million in refunds across cases in 2023 alone. The agency stated that it will never request payment or personal banking information in exchange for a refund. Fraud, scams, or other unfair business practices can be reported to the FTC online.
As the Lord Leads, Pray with Us…
- For Chair Lina Khan as she oversees the Federal Trade Commission.
- For members of the FTC as they seek ensure the interests of consumers are protected.
Sources: Federal Trade Commission
