Finance Firms in the Dock – FTC Compensating Credit Karma’s Victims

<p>The Federal Trade Commission (FTC) has swung into action, announcing a
claims process that unravels the deceptive web of Credit Karma's
"pre-approved" credit card offers that left consumers facing denials.
</p><p>It begs asking the question, “What does pre-approved mean if you can be
denied?” We’re not paid enough to engage in that level of thought, so on we go.</p><p>The Sting Operation: 497,425 Potential Victims</p><p>In a dramatic saga that feels like a plot twist in a financial
thriller, the <a href="https://www.financemagnates.com/tag/ftc/" target="_blank" rel="follow">FTC</a> is launching a claims process targeted at the 497,425 souls
who found themselves tangled up thanks to Credit Karma's misleading maneuvers.
It turns out that being "pre-approved" by Credit Karma was more receiving
a ticket for a train that never left the station.</p><p>Claims, Emails, and Snail Mail: The FTC’s Grand Communication Gala</p><p>Picture this: You're checking your inbox, and there it is—an email from
the FTC. Got one? Well, you might be entitled to compensation. But for the
digital outliers without an email address, fear not; the FTC is sending letters
via good old snail mail, reminding you of Credit Karma's audacity. Stay off the
grid, keep that tin foil hat on.</p><p>Deadline Drama: March 4, 2024, Beckons</p><p>The ticking clock echoes louder as the FTC declares March 4, 2024, as
the ultimate deadline for victims to step forward and claim their piece of the
pie. Ready your keyboards and click your way to justice at www.ftc.gov/CreditKarma.
It's time for some financial reckoning.</p><blockquote><p lang="en" dir="ltr">If you've accepted an offer dangled by Credit Karma of getting pre-approved for a credit card or loan, you could be due some money. <a href="https://t.co/4BVXlK26OZ">https://t.co/4BVXlK26OZ</a></p>— CBS News (@CBSNews) <a href="https://twitter.com/CBSNews/status/1732641088580571228?ref_src=twsrc%5Etfw">December 7, 2023</a></blockquote><p>Credit Karma’s Fall from Grace: A $3 Million Tale</p><p>Back in September 2022, the FTC decided to take a look at Credit Karma,
accusing them of making false promises of offer "pre-approved" cards,
or offering dazzling "90% odds" of approval for credit cards. Credit
Karma coughed up a hefty $3 million to settle, which is now poised to cushion
the financial bruises of those impacted by their shifty schemes.</p><p>What began as a modest 30 complaints against Credit Karma's
"pre-approved" cards transformed into a torrent of nearly 900 grievances
within five months of the FTC's crackdown. The FTC, well-versed in the iceberg
effect of consumer complaints, saw this surge as just the tip, revealing the
magnitude of the financial fiasco Credit Karma initiated.</p><p>Refund Revelry: The FTC’s $392 Million Windfall</p><p>As the curtain falls on this financial drama, the FTC's interactive
dashboards unveil a state-by-state breakdown of the $392 million in refunds
cascading across the nation. A testament to the FTC's resolve to bring
financial justice, one deceptive credit offer at a time. All hail the FTC.</p><p>All this reminds us of an article <a href="https://www.financemagnates.com/trending/cz-pleads-out-joining-illustrious-company-with-past-legal-issues/">posted
just recently</a> giving something of a who’s who of financial ne’er do wells that
included CZ, Jaime Dimon, SBF and more. It seems that wickedness is in the air,
despite the fact that many of us are often warned about being naughty or nice
this time of year…</p>

This article was written by Louis Parks at www.financemagnates.com.