Hundreds of thousands of Americans could potentially receive a direct payment from a $3 million settlement following a lawsuit against Credit Karma, a popular personal finance company. The lawsuit, initiated by the Federal Trade Commission (FTC), alleged that Credit Karma misled customers by falsely promising high approval chances for credit opportunities. As a result, many customers experienced credit denials and wasted time engaging with the process.
The settlement, finalized on January 23, 2023, aims to compensate affected individuals who were denied credit after responding to offers from Credit Karma between February 2018 and April 2021. These offers typically indicated that customers were “pre-approved” or had “90% odds” of approval. Importantly, no documentation proof is required for eligibility.
Those who believe they qualify for a payment from the settlement should have received an email or letter from the FTC containing a claim ID number. For those who haven’t received this communication, they can reach out to the settlement website or contact the provided email or phone number to obtain their claim ID.
To file a claim, Credit Karma customers can visit the settlement website and enter their claim ID into the digital portal to submit a form. The deadline for claim submission is March 4, 2024. While it’s unclear if there’s a mail-in option for the claim form, individuals are encouraged to utilize the online portal for convenience.
As for the payment amount, it has not yet been determined. The FTC mentioned that the disbursement amount will vary based on the number of claimants and other factors such as legal fees and expenses deducted from the $3 million settlement fund.
In summary, affected individuals who were misled by Credit Karma’s credit approval representations have the opportunity to claim a one-time direct payment from the settlement. With a straightforward process for filing claims and a deadline of March 4, 2024, eligible individuals are encouraged to take necessary steps to receive compensation.