Credit Karma Must Pay Users $3 Million For ‘False Claims’ That Decreased Credit Scores

Some Credit Karma users will be a part of a $3 million payout.

The Federal Trade Commission has ruled that the business must pay users after deceptively claiming that they were pre-approved for credit cards.

The FTC has said that one out of three people were denied after submitting an application for the credit card offers. As a result, their credit scores decreased.

This occurred between 2018 and 2021 the agency says.

In order to rid the disruptions, Credit Karma has settled although the company doesn’t agree with the FTC.

It isn’t known how many clients were affected or how they can claim their funds.

Credit Karma allows individuals to monitor their credit details, at no cost. However, it receives money when customers are approved for loans or credit cards.