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- Prepared Statement of the FTC on Repair Restrictions Before the Committee on Business Affairs & Labor in the Colorado General Assembly (February 28, 2024 )
- Veterans Consumer Protection: Preventing Financial Exploitation of Veterans and Their Benefits (April 19, 2023 )
- Protecting Military Servicemembers and Veterans from Financial Scams and Fraud: Prepared Statement of the Federal Trade Commission Before the House Subcommittee on National Security (July 13, 2022 )
- Stopping COVID-19 Fraud and Price Gouging (February 1, 2022 )
- 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
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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. Be wary of debt settlement companies that promise to slash your debt ...
One 2019 report found that debt (any type) carried by people age 65+ jumped from $7,500 in 1989 to more than $31,000 in 2016. 2. Low-income older adults are at especially high risk of having higher “ debt stress ,” or the ratio of debt to assets.
Sep 18, 2023 · Bottom line. When going down the debt relief path, it's essential to be vigilant about recognizing warning signs, such as unsolicited offers, poor reviews, costly upfront fees and a promise of ...
Feb 28, 2022 · “These scammers lured victims—financially distressed consumers, along with seniors—into signing up for their debt-relief scheme. Instead of receiving the promised relief, victims were brought down further into debt while the defendants made millions,” Florida Attorney General Ashley Moody said.
Mar 8, 2023 · Some of the most noticeable red flags include: Robocalls: Robocalls, or recorded phone messages, are often a sign of a scam. This is especially true when it comes with an unsolicited offer of debt relief. Upfront payments: If a debt relief company asks for an upfront payment, this is a strong sign it is a scam.
