The Credit Karma Settlement involves a total payout of $3 million. Although the specific individual payout remains uncertain, eligible claimants could receive substantial compensation. The payment distribution is expected to begin in 2024.
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Credit Karma Settlement Payout Date
In January 2023, Credit Karma settled charges brought by the Federal Trade Commission (FTC). The FTC alleged that many people who received “pre-approved” credit offers from Credit Karma were not actually approved. As a result, these individuals wasted time applying and sometimes saw their credit scores drop when their applications were denied.
The deadline to apply for a payment under this settlement was March 4, 2024. The settlement money will be distributed among all qualified claimants. However, as of now, there is no specific date set for when the settlement payments will be mailed out. The FTC will update its news release with more information once available.
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How much will I get through Credit Karma Settlement Payout?
Credit Karma is required to pay $3 million as part of the settlement. The FTC has actively sent out notices to approximately 500,000 individuals who may have been impacted by the misleading “pre-approved” claims.
These notices include unique claim IDs, which were essential for eligible individuals to participate in the settlement. The total payout amount for the Credit Karma settlement will depend on several factors, including the number of eligible claimants and the overall settlement fund.
However, once all claims are processed, the funds will be distributed among qualified individuals. While the exact per-person amount is not yet finalised, it’s estimated that eligible claimants may receive good payment.
Those who filed valid claims by the deadline (March 4, 2024) will receive a payout. Some claimants may have experienced more significant harm (e.g., credit score drops) due to the misleading pre-approved credit offers, which could impact their specific payout.
What if I do not receive the Credit Karma Settlement Payout Amount?
If you find yourself in a situation where you do not receive the Credit Karma Settlement Payout Amount, here are some steps to consider. Double-check that you meet all the eligibility criteria for the settlement. If you don’t meet these criteria, unfortunately, you may not be eligible for the payout.
Confirm that you submitted a valid claim by the specified deadline (March 4, 2024). After this deadline, claims might not be taken into consideration. If you believe you should have received a payout but haven’t, reach out to the claims administrator directly. You can contact them at 1-866-848-0871.
Please include any pertinent data or supporting material that will strengthen your position. If you’ve exhausted all other avenues, consider seeking legal advice. Consult with an attorney who specializes in consumer protection or settlements.
Who is eligible to get Credit Karma Settlement Payout?
Let’s outline the eligibility criteria for the Credit Karma Settlement Payout:
Pre-Approved Offers:
- To be eligible, you must have received a “pre-approved” or “high chance of approval” offer from Credit Karma between February 2018 and April 2021. These offers could have been related to credit cards, loans, or other financial products.
Application and Denial:
- After receiving the pre-approved offer, you applied for the credit product based on that offer. However, you were ultimately denied credit after applying.
No Document Requirement:
- Importantly, you do not need any documents to prove your claim. This streamlined process makes it easier for affected individuals to participate in the settlement.
Why and how has the Credit Karma Settlement happened?
The Credit Karma Settlement serves as a corrective measure to protect consumers and ensure fair practices in the financial industry. Let’s discuss the reasons behind the Credit Karma Settlement:
Deceptive Claims:
- The Federal Trade Commission (FTC) alleged that Credit Karma made deceptive “pre-approved” claims to consumers. Many people who received these offers were not actually approved for credit, leading to wasted time and potential harm to their credit scores.
Consumer Harm:
- Misleading pre-approval claims can harm consumers by:
- Raising false expectations of credit approval.
- Prompting unnecessary credit applications.
- Potentially impacting credit scores due to application denials.
Violation of Consumer Protection Laws:
- By misleading consumers with false pre-approval claims, Credit Karma violated consumer protection laws. The settlement aims to hold the company accountable for these practices.
Resolution:
- To address these issues, Credit Karma agreed to pay a settlement amount of $3 million and cease deceptive practices related to pre-approved offers.
Notification and Process:
- Once the claims are processed, eligible individuals will receive notifications regarding the payout process date and medium. The funds will likely be distributed via checks or electronic transfers.
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