The Federal Trade Commission on Monday ordered personal finance company Credit Karma to pay $3 million to customers the agency alleges were deceived into applying for products they weren't eligible for.
refer to website and app interface designs that can be used to manipulate or mislead consumers.
"For many of these offers, almost a third of consumers who received and applied for 'pre-approved' offers were subsequently denied based on the financial product companies' underwriting review," the agency said in a previously issued consentCredit Karma, which provides users with tools to monitor their credit scores and reports, told some users that they had"90% odds" of being approved for credit products, according to the FTC.
The FTC, which first announced its complaint against Credit Karma in September 2022, has also ordered the credit services company to stop making these kinds of false claims.
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