Credit Karma fined $3M by FTC for misleading consumers with credit card offers
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Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#2>> Preserve records: To help prevent further use of deceptive dark patterns, the order requires Credit Karma to preserve records of any market, behavioral, or psychological research, or user, customer, or usability testing, including any A/B or multivariate testing, copy testing, surveys, focus groups, interviews, clickstream analysis, eye or mouse tracking studies, heat maps, or session replays or recordings.
That’s quite interesting. Presumably they tried to use this as some excuse, or didn’t have the data available to enable the FTC to make a strong assessment as to how many people were presented with a deceptive offer.
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#3All the offers Credit Karma has presented to me have been legit, near as I can tell. I have had no complaints about their app and it has helped me to vastly improve my credit rating. I'm surprised to see this story.
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#4All the offers Credit Karma has presented to me have been legit, near as I can tell. I have had no complaints about their app and it has helped me to vastly improve my credit rating. I'm surprised to see this story.
I think they've grown, but it was a one-man company for a long time. Edit: I don't know what I'm talking about, seems like.
It's always been great, so I'm also surprised.
Glad he can afford it.
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#5All the offers Credit Karma has presented to me have been legit, near as I can tell. I have had no complaints about their app and it has helped me to vastly improve my credit rating. I'm surprised to see this story.
I think they've grown, but it was a one-man company for a long time. Edit: I don't know what I'm talking about, seems like. It's always been great, so I'm also surprised. Glad he can afford it.
They have something like 2000 employees now.
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#6More information direct from FTC: https://www.ftc.gov/news-events/news/press-releases/2022/09/...
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#7>The FTC alleges that the company used claims that consumers were pre-approved and had ’90 per cent odds’ to entice them to apply for offers that, in many instances, they ultimately did not qualify for.
I believe CK has inside views to the models^ these companies use, and I wouldn't be surprised to find that 90% is actually very close to reality. However, I can also see why someone taking a hard credit pull would be very annoyed to be declined.
Also, Credit Karma gets paid for successful conversions, and maybe ad placement? It doesn't seem like misleading someone got them any profit.
This all around seems like a really weird thing to slap this company with - Credit Karma doesn't really directly profit^^ from getting this wrong, nor do their partners. Yes, Credit Karma screwed up, but to frame it as "misleading consumers" makes it sound a lot worse than it is.
I wonder if there is missing subtext or inside baseball that makes this all make a lot more sense. Regardless, that language does seem misleading, and I'm glad to see it be turned into something more accurate and informative.
^ they seem to have some sort of b2b platform ("lightbox"?) for letting their vendors import their models into credit karma. It's probably pretty powerful for a lender to change and simulate new model changes for targeting offers.
^^ pissing off your users while not making money is always a bad look
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#8All the offers Credit Karma has presented to me have been legit, near as I can tell. I have had no complaints about their app and it has helped me to vastly improve my credit rating. I'm surprised to see this story.
Credit Karma was bought by Intuit - the makers of turbo tax who are responsible for lobbying against the IRS from supporting its own free online tax filing service. Luckily that is changing. I have little trust in Intuit.
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#9>The FTC alleges that the company used claims that consumers were pre-approved and had ’90 per cent odds’ to entice them to apply for offers that, in many instances, they ultimately did not qualify for. I believe CK has inside views to the models^ these companies use, and I wouldn't be surprised to find that 90% is actually very close to reality. However, I can also see why someone taking a hard credit pull would be…
> CK has inside views to the models these companies use, and wouldn't be surprised to find that 90% is actualy very close to reality.
or the basis as is obvious is that this was a fraudulent claim. these things get researched thoroughly before they levied
Re: Credit Karma fined $3M by FTC for misleading consumers with credit card offers
#10All the offers Credit Karma has presented to me have been legit, near as I can tell. I have had no complaints about their app and it has helped me to vastly improve my credit rating. I'm surprised to see this story.
I think they've grown, but it was a one-man company for a long time. Edit: I don't know what I'm talking about, seems like. It's always been great, so I'm also surprised. Glad he can afford it.
> one man company
> Glad he can afford it
???