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If you've accepted an offer dangled by Credit Karma of getting pre-approved for a credit card or loan, you could be due some money. 

People who got the pre-approval offers from Credit Karma and then subsequently weren't approved for credit can file to get money from a $3 million settlement, according to the Federal Trade Commission. The FTC said that people who are in this situation both wasted their time and suffered lower credit scores when companies subsequently denied their credit applications. 

The money stems from a settlement earlier this year between the FTC and Credit Karma in which the agency claimed Credit Karma allegedly used dark patterns to trick consumers into thinking they were pre-approved for credit card offers for which they usually did not qualify. Dark patterns are website or app designs that can mislead consumers. 

In a statement emailed to CBS MoneyWatch, an Intuit Credit Karma spokesperson said the company "fundamentally disagree[s] with allegations the FTC makes in their complaint, which relate solely to statements we ceased making years ago."

The company added that implications that Credit Karma rejected consumers applying for credit cards "is simply incorrect, as Credit Karma is not a lender and does not make lending decisions." Credit Karma noted that it had reached the settlement "to put the matter behind us so we can maintain our focus on helping our members find the financial products that are right for them."

How many people qualify for the settlement?

Almost 500,000 consumers may be eligible for a payment, the FTC said. 

You can apply for part of the settlement money if you were offered a pre-approved credit card from Credit Karma but were denied approval after you applied. 

How do I know if I qualify?

The FTC said it is emailing most consumers, but about 4,000 people who don't have email addresses on file will get a letter in the mail. 

If you believe you qualify but didn't get a letter or email, you can email [email protected] or call 866-848-0871 to get one, the FTC said. 

How to apply for Credit Karma settlement money

First, make sure you have a claim ID. This will be in the letter or email the FTC sent to you. 

Secondly, you'll have to file a claim at ftc.gov/CreditKarma.

Is there a deadline for making a claim?

Yes, you'll have to make a claim by March 4, 2024. 

How much money will I get? 

That depends on how many people file claims, according to the FTC. However, if the total number of people estimated to be eligible were to file claims, that would result in payments of about $6 each.

Aimee Picchi

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

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