CREDIT Karma customers are due compensation from a $3million pot after they were allegedly misled by the site.
The Federal Trade Commission (FTC) this week ordered Credit Karma to compensate customers who applied for credit cards they didn't get.
Credit Karma "tricked" consumers into thinking they were "pre-approved" for credit card offers that they usually did not qualify for, the FTC first claimed in September.
The site allegedly also said customers had 90 percent odds of approval between February 2018 and April 2021.
The FTC announced its first complaints to Credit Karma in September 2022 and ordered the company to stop making the claims.
On Monday, FTC finalized an order to settle charges.
The $3million will be sent to consumers who wasted their time applying.
When consumers applied for these offers, they were subject to a “hard inquiry” on their credit reports, which in "many instances" lowered consumers’ credit scores, the FTC said.
Samuel Levine, director of the FTC’s Bureau of Consumer Protection, previously said: “Credit Karma’s false claims of ‘pre-approval’ cost consumers time and subjected them to unnecessary credit checks.
"The FTC will continue its crackdown on digital dark patterns that harm consumers and pollute online commerce.”
However, Credit Karma disputed the FTC's claims.
It told The U.S. Sun: "We fundamentally disagree with allegations the FTC makes in their complaint, but we reached this agreement to put the matter behind us so we can maintain our...
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