Credit Karma Has Its BBB Rating Fall Due to FTC Settlement

Credit Karma BBB rating falls on FTC agreement
The Credit Karma settlement with the FTC seems to have hurt its Better Business Bureau (BBB) rating. While many of its competitors have a rating of “A” or “A+” with the BBB, Credit Karma only has a “B” rating. This is due primarily to the fact that the company had to settle charges with the Federal Trade Commission (FTC) over security issues with its mobile app.

Although Credit Karma has a number of factors which help to raise its BBB score (length in business, complaint volume for business size, response to complaints, resolution of complaints and sufficient background of the business), the BBB website states the main factor which decreased the BBB score

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6 Responses to Credit Karma Has Its BBB Rating Fall Due to FTC Settlement

  1. Jim says:

    It seems to me if Fandago’s BBB rating remained at an A, then there must be more going on with Credit karma for it’s rating to decrease to a B.

  2. David says:

    Seems like Credit Karma has some bad karma. A bit sleazy for doing false advertising and not protecting consumers data – ironic for a company claiming to do identity protection.

  3. Merica! says:

    I’ve stopped recommending the service to clients. I can’t believe that a company that requires that much personal data didn’t have something in place. “B” is a long way to fall. There must be more to the story than meets the eye?

  4. Robert says:

    I don’t think they do ID protection. I think they give free credit scores and do credit monitoring. Still, no excuse for them to not secure their apps. I would make me question how well they protect all the information you give them.

  5. S3Jensen says:

    Their app has more issues than just a lack of SSL certificate pinning. You can read more about the issues at the link below:

    http://s3jensen.blogspot.com/

  6. Argon Branch says:

    CreditKarma also doesn’t tell the truth about credit scores. They would like you to believe that the credit scores they give you are FICO scores, but they’re not. They’re some other credit score. Most people think that they’re getting their FICO score, when, in truth, the score CreditKarma gives you can vary greatly from one’s FICO score, and lead to credit decisions made with misleading data. For example, my FICO score differed by over 50 points from CreditKarma’s score. When dealing with credit issues, a company must have credibility. CreditKarma has lost a lot of it. It’s going to hurt them in the long run.

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