ORLANDO, Fla.--(BUSINESS WIRE)--SubscriberWise, the nation's largest issuing CRA for the communications industry and the leading protector of children victimized by identity fraud, announced today company founder David E. Howe is publicly acknowledging Credit Karma for its removal of a potentially misleading advertisement. The ad communicated to viewers a depiction of Credit Karma scores being used in a very common underwriting scenario that resulted in an immediate approval. The approval, as instantly communicated in the ad, would almost certainly violate FTC and federal consumer credit laws, including existing ‘Red Flag’ rules designed to mitigate identity theft (http://insurancenewsnet.com/oarticle/Federal-Trade-Commission-and-SubscriberWise-Reduce-Risk-of-Identity-Theft-for-U-a-508966). The ad had the potential to mislead and misinform millions of viewers about how they might rely on their personal Credit Karma account, as well as the legal procedures required by creditors to process consumer-initiated credit and payment transactions.
“On Wednesday, May 25, 2017, I alerted Credit Karma with concerns that I had with an advertisement that, from my professional perspective, violated a number of FCRA rules while also having the potential to inadvertently mislead viewers (http://www.businesswire.com/news/home/20170525006077/en/SubscriberWise-Founder-FICO-Highest-Achiever-David-Howe),” confirmed David Howe, SubscriberWise founder and the nation’s most engaged protector of children victimized by identity fraud. “Today I obtained a screenshot from iSpot.tv that indicated the ad ‘has been removed at the request of the advertiser’ and that the last airing was just 48 hours after I contacted Credit Karma’s public relations department (https://www.ispot.tv/ad/wIIs/credit-karma-perfect-place).
“I applaud Credit Karma for its decision to remove an ad that I fully acknowledge was never intended to mislead or misinform the public in any way, but nevertheless included this possibility,” continued Howe. “In reality, few consumers are aware of the myriad intricacies and stringent federal requirements that are part of every legal and permissible-purpose consumer credit transaction -- just like the scenario portrayed in the ad ‘Perfect Place’.
About Credit Karma TV Commercial, 'Perfect Place': A real estate agent is taking this couple on a home tour, and when she opens the door their faces light up. When she insists on checking their credit, they're already one step ahead and have Credit Karma pulled up on a smartphone. They provide her with a free credit score in seconds and are able to score the perfect place. – source iSpot.tv.
“And while it’s certainly acceptable – even encouraged – to produce light-hearted and fun advertisements to communicate the importance of good credit, including the myriad circumstances consumers are impacted by credit every day, it’s also critical that these messages ultimately empower viewers with information that’s entirely accurate and informative in every way possible.”
SubscriberWise® launched as the first issuing consumer reporting agency exclusively for the cable industry in 2006. In 2009, SubscriberWise and TransUnion announced a joint marketing agreement for the benefit of America's cable operators. Today SubscriberWise is a risk management preferred-solutions provider for the National Cable Television Cooperative.
SubscriberWise is a federally registered trademark of the SubscriberWise Limited Liability Co.