FTC sends payments to compensate people for time wasted applying to offers from Credit Karma
The FTC is sending Zelle payments to people who requested compensation for their time spent responding to credit offers from Credit Karma and didn’t cash their check or accept their PayPal payment.
According to the FTC, many people who got “pre-approved” credit offers from Credit Karma did not qualify for those offers and were denied credit. As a result, they wasted time applying and sometimes saw their credit scores drop when their applications were denied.
The settlement required Credit Karma to stop making these types of deceptive claims and pay money. The FTC is using that money to send payments to people who filed a valid claim before the deadline.
The FTC first sent checks and PayPal payments in October 2024, which resulted in more than $2.3 million in refunds. Now, the FTC is sending Zelle payments to people who didn’t cash their check or accept their PayPal payment.
If you get a Zelle payment, the payment will be deposited directly into your bank account with a note about the settlement. The FTC never asks you to pay money to get a refund.
You can find answers to common questions about FTC refund payments on our FAQ page. If you have any other questions, please call the refund administrator at 1-866-848-0871.