Charlotte Residents to Benefit from Credit Karma Settlement
CHARLOTTE — Great news for nearly 3,000 consumers in the Carolinas! The Federal Trade Commission (FTC) announced Thursday that a whopping **$2.5 million** nationwide payout will be shared among those misled by Credit Karma’s “deceptive” credit offers. If you remember applying for a credit offer that promised **“90% odds”** of **“pre-approval,”** you might just be getting a little financial boost.
What Happened?
Credit Karma, a well-known financial technology company with its East Coast headquarters right here in Charlotte since 2016, has agreed to compensate consumers who fell victim to misleading claims. According to the FTC, between February 2018 and April 2021, around one-third of the applicants—with many of them in our region—were denied the credit they sought, which led to unnecessary credit checks and even drops in their credit scores.
Samuel Levine, the director of the FTC’s Bureau of Consumer Protection, pointed out that **Credit Karma’s false claims** negatively impacted people’s lives, wasting their time and hurting their credit scores. In the agency’s statement, they emphasized the need to protect consumers and promote fairness in the financial industry.
How Many in the Carolinas Will Receive Payments?
For those eager to know more, the FTC will be sending out **50,994 payments** to consumers across the U.S. and Puerto Rico. In North Carolina, **1,841 people** will share nearly **$92,000**, while **911** individuals in South Carolina will see a share of over **$45,500**. Each recipient will receive **$49.96**, which may seem small but serves as a reminder of the importance of consumer rights.
What Credit Karma Has to Say
In response to the FTC’s findings, Credit Karma expressed its disagreement with the allegations. They stated, **“Credit Karma is not a lender and does not make lending decisions.”** The firm explained its goal is to help users navigate their finances better and find the right financial products for their needs. The company also reaffirmed its commitment to ensuring that such misleading claims won’t be made in the future.
Payment Process and Deadline
Curious about how to receive your payment? The FTC will be issuing payments either by **check or via PayPal** to individuals who made claims before the March 4 deadline. If you’re among the eligible individuals, keep an eye on your mailbox or inbox.
Credit Karma’s Presence in Charlotte
It’s worth noting that this settlement comes as Credit Karma continues to grow in Charlotte. Last May, the company made a significant **$13 million investment** in a new office space around Ballantyne Corporate Place. Starting with just **25 employees** nearly a decade ago, Credit Karma has since expanded to employ over **450 full-time workers** and plans to add more jobs in the coming years. It’s a true testament to the area’s thriving tech hub!
Final Thoughts
As our community continues to navigate the complexities of credit and finance, this settlement serves as a critical reminder to be aware of what we’re signing up for. Deceptive credit offers can significantly impact our financial health, and it’s always essential to ensure we understand the terms before applying. For those affected by Credit Karma’s practices, relief is on the way! Stay vigilant and informed!
