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FTC Takes Action to Stop CK From Tricking Consumers...

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Ceewin
Regular Contributor

FTC Takes Action to Stop CK From Tricking Consumers...

https://www.ftc.gov/news-events/news/press-releases/2022/09/ftc-takes-action-stop-credit-karma-trick...

 

The Federal Trade Commission has taken action against credit services company Credit Karma for deploying dark patterns to misrepresent that consumers were “pre-approved” for credit card offers. The FTC alleges that the company used claims that consumers were “pre-approved” and had “90% odds” to entice them to apply for offers that, in many instances, they ultimately did not qualify for.

Message 1 of 13
12 REPLIES 12
blindambition
Senior Contributor

Re: FTC Takes Action to Stop CK From Tricking Consumers...

I saw this earlier. It was only a matter of time. Not all consumers are as informed as myFICOers. I'm surprised it took this long.

Message 2 of 13
donotpassgo
Valued Member

FTC Slaps Credit Karma with $3M AA Notice

The Smackdown:

 

Credit Karma, which offers people a free way to check their credit scores, told people that they had “90% odds” and had been “pre-approved” for credit cards that they actually did not qualify to receive, the Federal Trade Commission says in a new complaint. The federal agency alleges that between February 2018 and April 2021, almost one-third of people who were told they would qualify did not, causing them to “unnecessarily” receive a hard inquiry on their credit reports that often hurt their scores.

 

Full Story here 

 

FTC Complaint - PDF 

Message 3 of 13
GZG
Valued Contributor

Re: FTC Takes Action to Stop CK From Tricking Consumers...

This doesn't surprise me in the slightest.

 

My current CK says I'm "Karma Guaranteed" for the cash back version $0 AF of the mission lane card, but only having "fair" odds for the highest APR $59 AF version. 

 

I also somehow have "excellent" odds at the U.S. Bank Altitude® Go Visa Signature® Card for some reason. Which is nonsense given my profile.

Vantage TU/EQ ~650 for both.

image.pngimage.png

Starting FICO 8:

Current FICO 8:

5% cards:



3% and 2% cards:



Low APR cards:



Sign Up Bonuses and Debit Cards:



2/6, 3/12, 11/24

Message 4 of 13
Traveler101
Established Contributor

Re: FTC Takes Action to Stop CK From Tricking Consumers...

Great to see this. It's annoying that they always try and push something on me. Reduce my interest on my personal penfed loan. I'm paying too much. I click and their pre-approval interest rates pop up. As low as..lmao. 4 points or more higher than what I am paying. That's if I get the best rate. Lol, no thanks. Sorry, I'm not impressed. More of a comedy than anything. Glad to see it happen.

Message 5 of 13
Lou-natic
Established Contributor

Re: FTC Takes Action to Stop CK From Tricking Consumers...

Glad to see something is being done about CK and their tactics. We know it's pure marketing but many people don't.

Honestly I think the premise is a good one, it's just that they don't follow through on it as they would rather take the money and run.




3/3/24
Message 6 of 13
joltdude
Senior Contributor

Re: FTC Slaps Credit Karma with $3M AA Notice

Late to the party but just saw this article on Vice today about it...

https://www.vice.com/en/article/z34zb8/credit-karma-hurt-peoples-credit-scores-using-dark-patterns-f...

 

-J

Message 7 of 13
805orbust
Valued Contributor

Re: FTC Slaps Credit Karma with $3M AA Notice

It's weird. I'm only aware of their stuff being useless marketing and how to properly use them, but only because of being here.  I'd probably have fallen for that crap a few times if not.



Message 8 of 13
Anonymalous
Valued Contributor

Re: FTC Slaps Credit Karma with $3M AA Notice


@805orbust wrote:

It's weird. I'm only aware of their stuff being useless marketing and how to properly use them, but only because of being here.  I'd probably have fallen for that crap a few times if not.


It's logical to assume the offers are at least plausible. CK has a huge database of credit profiles after all, and if they had a deal with their affiliates that notifies them when someone goes through one of their links and is successfully approved (or denied), they could use that data to make a good assessment of your chances.

 

But they don't seem to do it, at all. The cards I'm offered are just so random.

Message 9 of 13
Bill77
Regular Contributor

Re: FTC Takes Action to Stop CK From Tricking Consumers...

They should also be fined for not making it clear that the Upgrade card they promote is not a credit card.

 

 

Message 10 of 13
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