Debt Relief Service and Credit Repair Scams
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. These operations often charge cash-strapped consumers a large up-front fee, but then fail to help them settle or lower their debts – if they provide any service at all. Some debt relief scams even tout their services using automated "robocalls" to consumers on the Do-Not-Call List.
Auto loan modification scams falsely promise that they can reduce consumers' monthly car loan or lease payments to help them avoid repossession. The FTC also works to make sure consumers get a fair deal in the auto marketplace.
Credit repair scams also frequently target financially distressed consumers who are having credit problems. These operations lure consumers to purchase their services by falsely claiming that they will remove negative information from consumers' credit reports even if that information is accurate.
The FTC has brought scores of law enforcement actions against these bogus credit-related services, and the agency has partnered with the states to bring hundreds of additional lawsuits. Further, in 2010, the FTC amended its Telemarketing Sales Rule to protect consumers seeking debt relief services, like debt settlement or credit counseling. The Rule prohibits for-profit companies that sell these services over the telephone from charging a fee before they actually settle or reduce a consumer's debt. It also prohibits debt relief providers from making misrepresentations and requires that they disclose key information that consumers need in evaluating these services.
- Financial Education Services ( )
- Panda Benefit Services, LLC., FTC v. ( )
- Apex Processing Center ( )
- Elegant Solutions, Inc. (Mission Hills Federal) ( )
- Home Matters USA ( )
- SL Finance ( )
- American Financial Benefits Center, et al. ( )
- ACRO Services ( )
- Viceroy Media Solutions ( )
- Arete Financial Group ( )
- GDP Network LLC (YF Solution) ( )
- BCO Consulting ( )
- Stratics Networks ( )
- Michael and Valerie Rando, et al., FTC v. ( )
- Student Advocates Team, LLC, et al. ( )
- GAFS Group, LLC, et al. ( )
- ITMedia Solutions LLC ( )
- Moneta Management Inc. ( )
- SLAC, Inc. ( )
- Manhattan Beach Venture, LLC, et al. ( )
- FTC Acts to Stop Scheme that Bilked Millions out of Student Loan Borrowers ( )
- FTC Acts to Stop Debt Relief Scheme Targeting Spanish-Speaking Student Loan Borrowers ( )
- FTC Acts to Stop Student Loan Debt Relief Scheme that Took Millions from Consumers in First Case under the Impersonation Rule ( )
- FTC Action Leads to Industry Ban for Ringleader of Student Loan Debt Relief Scam ( )
- FTC Sends More Than $4.1 Million in Refunds to People Who Lost Money to Student Loan Debt Relief Scheme ( )
- FTC, California DFPI Case Leads to Ban Against Operators of Mortgage Relief Scam Home Matters USA ( )
- FTC Action Leads to Permanent Ban for Scammers Who Charged Students Seeking Debt Relief with Junk Fees ( )
- FTC Announces Claims Process for Consumers Harmed by Lanier Law Mortgage Relief Scheme ( )
- FTC Sends More Than $1.2 Million in Refunds to Consumers Harmed by Deceptive Mortgage Loan Modification Scam ( )
- Student Loan Debt Relief Scammers Permanently Banned from Industry, Ordered to Turn Over Assets under Proposed Order ( )
- FTC and DOJ Send More Than $9 Million in Refunds to People Who Lost Money to a Student Loan Debt Relief Scheme ( )
- FTC Stops Scammers Charged with Preying on Students Seeking Debt Relief ( )
- FTC, Law Enforcers Nationwide Announce Enforcement Sweep to Stem the Tide of Illegal Telemarketing Calls to U.S. Consumers ( )
- FTC and Federal and State Partners to Announce Nationwide Robocall and Telemarketing Enforcement Sweep in Chicago on July 18 ( )
- FTC Sends More than $3.3 Million to Consumers Harmed by Student Loan Debt Relief Scam ( )
- FTC Sends More Than $557,000 to Consumers Harmed by Credit Card Interest Rate Reduction Scam ( )
- FTC Stops Student Loan Debt Relief Schemes that it Says Bilked Students Out of Millions ( )
- FTC Lawsuit Leads to Permanent Ban from Debt Relief, Telemarketing for Operators of Debt Relief Scam ( )
- FTC Halts Debt Relief Scheme that Bilked Millions from Consumers While Leaving Many Deeper in Debt ( )
- Federal Trade Commission, California Take Action To Shut Down Mortgage Relief Operation that Preyed on Struggling Homeowners ( )
- Working Together to Protect Michigan Consumers: A Common Ground ConferenceJuly 13, 2016
- Scam Jam: An Evening to Empower Georgia ConsumersMay 19, 2015
- Spotting and Avoiding Scams in Our CommunitiesApril 21, 2015
- Public Forum on Debt Relief Amendments to the Telemarketing Sales RuleNovember 4, 2009
- Consumer Protection and the Debt Settlement IndustrySeptember 25, 2008
- Federal Trade Commission Enforcement of the Fair Debt Collection Practices Act in Calendar Year 2021: Report to the Consumer Financial Protection Bureau ( )
- FTC Enforcement Activities under the ECOA and Regulation B: Report to the ( )
- Consumer Sentinel Network Data Book for January - December 2013 ( )
- Consumer Sentinel Network Data Book for January - December 2012 ( )
- Consumer Sentinel Network Data Book for January - December 2011 ( )
- Prepared Statement of Commissioner Melissa Holyoak Before the Subcommittee on Innovation, Data, and Commerce of the Energy and Commerce Committee, United States House of Representatives concerning “The Fiscal Year 2025 Federal Trade Commission Budget” ( )
- Statement of Commissioner Alvaro M. Bedoya Before the U.S. House of Representatives Energy & Commerce Committee Subcommittee on Innovation, Data & Commerce for the Hearing: “The Fiscal Year 2025 Federal Trade Commission Budget” ( )
- Statement of Commissioner Andrew N. Ferguson Before the House Energy and Commerce Committee, Subcommittee on Innovation, Data, and Commerce regarding “The Fiscal Year 2025 Federal Trade Commission Budget” ( )
- Opening Statement of Commissioner Rebecca Kelly Slaughter as prepared for delivery Before the Committee on Energy and Commerce Subcommittee on Innovation, Data & Commerce ( )
- Testimony of Chair Lina M. Khan Before the House Committee on Energy and Commerce Subcommittee on Innovation, Data, and Commerce United States House of Representatives ( )
- Testimony of Chair Lina M. Khan Before the House Committee on Appropriations, Subcommittee on Financial Services and General Government ( )
- Prepared Statement of the FTC on Repair Restrictions Before the Committee on Business Affairs & Labor in the Colorado General Assembly ( )
- Veterans Consumer Protection: Preventing Financial Exploitation of Veterans and Their Benefits ( )
- Protecting Military Servicemembers and Veterans from Financial Scams and Fraud: Prepared Statement of the Federal Trade Commission Before the House Subcommittee on National Security ( )
- Stopping COVID-19 Fraud and Price Gouging ( )
- Frauds, Scams, and COVID-19: How Con Artists Have Targeted Older Americans During the Pandemic ( )
- Transforming the FTC: Legislation to Modernize Consumer Protection ( )
- Prepared Statement of the Federal Trade Commission: Curbing COVID Cons: Warning Consumers about Pandemic Frauds, Scams, and Swindles ( )
- Prepared Statement of the Federal Trade Commission: The Urgent Need to Fix Section 13(b) of the FTC Act ( )
- Opening Statement Of Acting Chairwoman Rebecca Kelly Slaughter before the United States House Committee on Energy and Commerce Subcommittee on Consumer Protection and Commerce: The Urgent Need To Fix Section 13(B) Of The FTC Act ( )
- Prepared Statement of Commissioner Rohit Chopra: Strengthening the Federal Trade Commission's Authority to Protect Consumers ( )
- Prepared Statement of Commissioner Christine S. Wilson: Strengthening the Federal Trade Commission's Authority to Protect Consumers ( )
- Prepared Statement of Commissioner Noah Joshua Phillips: Strengthening the Federal Trade Commission's Authority to Protect Consumers ( )
- Prepared Statement of the Federal Trade Commission: Strengthening the Federal Trade Commission's Authority to Protect Consumers ( )
- Prepared Statement of Acting Chairwoman Rebecca Kelly Slaughter: Strengthening the Federal Trade Commission's Authority to Protect Consumers ( )