Credit Karma $3 Million Settlement Update – Claim Deadline and Application Process 

Nearly half a million consumers who were misled by Credit Karma’s “pre-approved” credit card offers have until March 4, 2024 to file a claim for a portion of the company’s $3 million settlement with the Federal Trade Commission (FTC).

Credit Karma $3 Million Settlement Update

In January 2023, Credit Karma agreed to settle the charges brought by the FTC. The settlement includes:

• Monetary relief: Credit Karma will pay a total of $3 million to eligible consumers who were harmed by the deceptive practices.
• Changes to marketing practices: Credit Karma is prohibited from using misleading language regarding credit approval chances and must clearly disclose the factors impacting credit decisions.
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Credit Karma $3 Million Settlement Update Eligibility 

Who may be eligible:

• Consumers who received a “pre-approved” or “high odds of approval” offer from Credit Karma between December 2016 and October 2022.
• Consumers who were subsequently denied credit after applying for a credit card through one of these offers.

What you need to prove:

• Evidence of receiving a “pre-approved” or “high odds of approval” offer from Credit Karma. This could be an email, screenshot, or other documentation.
• Proof of being denied credit after applying for a credit card through Credit Karma. This could be a denial letter, email, or other documentation from the credit card issuer.

• The FTC may request additional information to verify your claim.
• The settlement fund will be divided among all eligible claimants, so individual payouts may vary depending on the number of claims filed.
• The deadline to file a claim is March 4, 2024.

How to Claim Your Share of the Credit Karma $3 Million Settlement?

If you believe you’re eligible, here’s a detailed guide to walk you through the process:

• Visit the FTC’s Credit Karma Settlement website at ftc.gov/enforcement/refunds/credit-karma-settlement
• Click on the “File a Claim” button. This will take you to the online claims portal.
• Register or log in to your FTC account. You can create a new account if you haven’t used the FTC website before.
• Answer the eligibility questions. These questions will help determine if you meet the criteria to file a claim.
• Upload your supporting documents. Make sure all your documents are scanned clearly and saved in a format accepted by the portal (e.g., PDF, JPG, PNG).
• Review your claim carefully. Ensure all information is accurate and complete before submitting.

• Submit your claim. Once submitted, you’ll receive a confirmation email with a claim ID.

Credit Karma $3 Million Settlement Claim Deadline 

The claim deadline for the Credit Karma $3 Million Settlement is March 4, 2024. It’s crucial to submit your claim before this date to be considered for a share of the settlement. Remember, claims received after March 4, 2024, will not be accepted.

The settlement fund will be divided among all eligible claimants, so individual payouts may vary depending on the number of claims filed. The FTC will review all claims and may contact you if they need additional information.

Credit Karma $3 Million Settlement Amount

The total settlement amount for the Credit Karma case is $3 million. However, it’s important to understand that this money will be divided among all eligible claimants who file a claim before the deadline. 

• The total number of claims filed: The more claims submitted, the smaller the individual payout will be, as the $3 million is distributed among all eligible claimants.
• The nature of individual claims: While the exact criteria haven’t been publicly disclosed, the FTC may consider factors like the number of “pre-approved” offers received, the specific credit cards applied for, and the documented impact of the denial on the individual’s credit score.

How will the settlement payment be distributed?

The Federal Trade Commission (FTC) typically doesn’t disclose specific distribution formulas for settlements. However, based on past settlements and general practices, we can make some educated guesses:

• Claim verification: The FTC will first verify the legitimacy of all submitted claims.
• Claim categorization: Based on the factors mentioned above, the FTC may categorise claims into different groups reflecting their perceived strength.
• Distribution formula: The FTC will use a predetermined formula to allocate the settlement funds amongst the various claim categories. This formula takes into account the number of claims in each category and their relative strength.
• Individual payout calculation: Each eligible claimant within a category will receive a portion of the allocated funds for that category, potentially adjusted based on individual claim specifics within the category.