FTC Fines Credit Karma, $3 Million For 'Tricking' Users , With Misleading Offers.<br />'Newsweek' reports that Credit Karma has been hit with a $3 million fine for falsely telling customers they were 'pre-approved' for credit cards. .<br />'Newsweek' reports that Credit Karma has been hit with a $3 million fine for falsely telling customers they were 'pre-approved' for credit cards. .<br />The Federal Trade Commission (FTC) <br />announced the fine on September 1.<br />According to the FTC, Credit Karma <br />pushed customers to apply for credit offers <br />that many people were not qualified for. .<br />The FTC found that almost one-third <br />of customers who applied for these <br />'pre-approved' offers were denied. .<br />The $3 million fine will be sent to customers who , "wasted time applying for these credit cards." .<br />The FTC also ordered Credit Karma to stop <br />"tricking" customers and to maintain <br />records of the company's marketing.<br />The misleading offers were <br />reportedly issued between <br />February 2018 and April of 2021.<br />Customers who applied and were denied incurred a hard inquiry on their credit reports, which could unnecessarily damage their credit scores.<br />Customers who applied and were denied incurred a hard inquiry on their credit reports, which could unnecessarily damage their credit scores.<br />'Newsweek' reports that a poor credit profile <br />can affect almost every aspect <br />of daily life in the United States.<br />A bad credit score can lead to loans being <br />rejected, housing applications denied <br />and higher insurance premiums.<br />A bad credit score can lead to loans being <br />rejected, housing applications denied <br />and higher insurance premiums.<br />The FTC will continue <br />its crackdown on digital <br />dark patterns that harm consumers <br />and pollute online commerce. , Samuel Levine, Director of the FTC's Bureau <br />of Consumer Protection, via 'Newsweek'.<br />A 'dark pattern' is a strategic marketing <br />campaign meant to subtly influence <br />a user to take specific actions
