FTC Fines Credit Karma, $3 Million For 'Tricking' Users , With Misleading Offers.
'Newsweek' reports that Credit Karma has been hit with a $3 million fine for falsely telling customers they were 'pre-approved' for credit cards. .
'Newsweek' reports that Credit Karma has been hit with a $3 million fine for falsely telling customers they were 'pre-approved' for credit cards. .
The Federal Trade Commission (FTC)
announced the fine on September 1.
According to the FTC, Credit Karma
pushed customers to apply for credit offers
that many people were not qualified for. .
The FTC found that almost one-third
of customers who applied for these
'pre-approved' offers were denied. .
The $3 million fine will be sent to customers who , "wasted time applying for these credit cards." .
The FTC also ordered Credit Karma to stop
"tricking" customers and to maintain
records of the company's marketing.
The misleading offers were
reportedly issued between
February 2018 and April of 2021.
Customers who applied and were denied incurred a hard inquiry on their credit reports, which could unnecessarily damage their credit scores.
Customers who applied and were denied incurred a hard inquiry on their credit reports, which could unnecessarily damage their credit scores.
'Newsweek' reports that a poor credit profile
can affect almost every aspect
of daily life in the United States.
A bad credit score can lead to loans being
rejected, housing applications denied
and higher insurance premiums.
A bad credit score can lead to loans being
rejected, housing applications denied
and higher insurance premiums.
The FTC will continue
its crackdown on digital
dark patterns that harm consumers
and pollute online commerce. , Samuel Levine, Director of the FTC's Bureau
of Consumer Protection, via 'Newsweek'.
A 'dark pattern' is a strategic marketing
campaign meant to subtly influence
a user to take specific actions