Credit Karma $3 Million Settlement for False Advertising

If you have ever received a "pre-approved" credit card offer from Credit Karma only to be denied upon application, you might be eligible for compensation from a recent class action settlement. This settlement addresses the misleading claims made by Credit Karma between February 2018 and April 2021, suggesting high approval odds for credit offers that were not always accurate. A $3 million settlement fund has been established to compensate individuals who were affected by this practice.

Who Benefits: Individuals who responded to a 'pre-approved' offer from Credit Karma and were subsequently denied credit. How much can I get: The payment amount will vary based on the number of claims filed and other factors.

Important Dates

• Deadline to File a Claim: March 4, 2024
• Final Hearing: January 23, 2023

Eligibility for Credit Karma Settlement

You may be eligible for compensation if you were turned down for credit after responding to an offer from Credit Karma that stated that you were "pre-approved" or had a "90% chance" of approval between February 2018 and April 2021. The FTC has sent out notices with Claim IDs to individuals who may be eligible. If you did not receive a notice but believe you qualify, you can contact the claims administrator for assistance.

• Individuals who were denied credit after responding to a 'pre-approved' offer from Credit Karma.
• The timeframe for these offers is between February 2018 and April 2021.

There are no exclusions mentioned; eligibility is based on the criteria of responding to a 'pre-approved' offer and being denied credit.

Understanding Your Settlement Award

The settlement aims to compensate for the time wasted and the potential negative impact on credit scores due to Credit Karma's deceptive 'pre-approved' offers. The exact amount each claimant receives will depend on the total number of valid claims submitted.

• Payment Amount: The payment amount will vary. The final amount will be determined after the claim deadline has passed and all claims have been reviewed.

Credit Karma's Deceptive Offers

The products or services at the center of this settlement are the 'pre-approved' credit card offers that were advertised by Credit Karma. These offers were presented to consumers with the claim that they were 'pre-approved' or had high odds of approval, which was not always the case.

• Pre-Approved Credit Card Offers
• Advertised High Odds of Approval

Is Proof Required to Claim the Reward?

While the official settlement website does not specify the need for proof to file a claim, it is generally a good practice to have documentation related to the 'pre-approved' offer and subsequent denial of credit. If you have received a notice with a Claim ID, that will serve as your key to filing a claim.

How to Claim Your Award

To claim your award, visit the official claim submission page at https://secure.creditkarmasettlement.com/ and enter your Claim ID. If you have not received a Claim ID but believe you are eligible, contact the claims administrator for assistance.

Remember, the deadline to file a claim is March 4, 2024. Act promptly to ensure you do not miss out on a potential payment.

Settlement Amount Analysis

The $3 million settlement amount was agreed upon to resolve allegations against Credit Karma. The amount each claimant will receive is not predetermined and will depend on the total number of eligible claims filed. The settlement amount is not subject to proration as per the information available on the official settlement website.

The Reason Behind the Credit Karma Class Action Settlement

The class action settlement was reached after the FTC charged Credit Karma with using deceptive tactics, claiming consumers were 'pre-approved' for credit offers they were not actually qualified for. This led to unnecessary credit checks that could potentially damage credit scores.

The settlement is a result of the FTC's enforcement action, and the next steps for affected consumers are to file their claims by the deadline to receive their share of the settlement fund.