US agency sends $2.5M to consumers deceived by false credit offers

By Ovunc Kutlu

ISTANBUL (AA) - The US Federal Trade Commission (FTC) announced Thursday it is sending more than $2.5 million to consumers who were deceived by allegedly false "pre-approved" credit offers by a credit services firm.

The regulator argued that American consumers were misled by deceptive claims from Credit Karma, which agreed to an FTC order that required the company to stop making these types of deceptive claims and to pay money to compensate consumers who were harmed.

The FTC said it is sending checks and PayPal payments to 50,994 consumers who filed a valid claim before the March 4 deadline.

The watchdog said it took action against Credit Karma in 2022, alleging that the company told consumers they were "pre-approved" and had "90% odds" of approval to entice them to apply for credit card offers that they ultimately did not qualify for.