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What is a debt relief service scam?
Are You a target for debt relief & credit scams?
Are debt relief & credit repair scams a scam?
How do I report a debt relief scam?
Debt relief service scams target consumers with significant credit card debt by falsely promising to negotiate with their creditors to settle or otherwise reduce consumers' repayment obligations.
- Demanding Payment Upfront
- Phone, Email Or Text Solicitations
- Promising Results
- Claiming Special Methods
- Advising You to Ignore Creditor Communications
- Promising Protection
Lawful debt relief companies collect fees only after securing settlement agreements with creditors. Upfront payments, which scammers may characterize as "voluntary donations" or fees, are not on the level.
Cold-call solicitations from debt relief companies could be scams. Before you give any personal information to any company that reaches out to you, research the business carefully.
Nothing is guaranteed in the debt relief process, so anything that sounds like a promise of results is untrustworthy.
Claims that legal maneuvering, technical tricks or exploiting "hidden" government programs can help you get out of debt are a favorite ploy of student loan scammers, but that approach from any debt relief company should serve as a red flag. The techniques legit debt relief companies use are well established, and you can apply them yourself without ...
If a credit relief company tells you to ignore communications from your creditors, they must also make it clear that doing so can have significant downsides, including accelerating debt collection efforts such as filing lawsuits against you.
Only a bankruptcy filing can stop a creditor from filing a debt collection lawsuit against you, so don't trust any debt relief company that promises to shield you from legal liability. Federal law requires debt collectors to cease communications with you if you (or a debt relief company representing you) asks them to do so in writing, but that cann...
- Jim Akin
Feb 15, 2019 · Report debt relief scams to the Federal Trade Commission, online or at 800-382-4357. The FTC and the U.S. Consumer Financial Protection Bureau offer background and advice on debt settlement, credit counseling and other ways to get out from under your financial liabilities.
Feb 20, 2024 · An emergency debt relief program could help, whether it's debt consolidation, debt management, debt settlement, or credit counseling. Learn how they each work and which is right for you.
Oct 30, 2023 · Consumers with heavy debt loads or lower credit scores are targets for debt relief and credit scams. Scammers commonly reach out with promises of results and demand upfront payments.
Sep 25, 2023 · Most debt relief scams work in one of these two ways: The scammer promises to help you with your debt for a significant upfront fee. Then, after you pay, they run off with your money. The scammer helps reduce some of your debt, but the fees you had to pay, along with new interest and penalties, far outweigh the debt relief you got.
