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.
- Stratics Networks ( )
- Michael and Valerie Rando, et al., FTC v. ( )
- BoostMyScore LLC ( )
- ACRO Services ( )
- Elegant Solutions, Inc. (Mission Hills Federal) ( )
- GDP Network LLC (YF Solution) ( )
- Arete Financial Group ( )
- Moneta Management Inc. ( )
- AmeriDebt, Inc. ( )
- American Financial Benefits Center, et al. ( )
- SLAC, Inc. ( )
- GAFS Group, LLC, et al. ( )
- Manhattan Beach Venture, LLC, et al. ( )
- Student Advocates Team, LLC, et al. ( )
- Impetus Enterprise, Inc. ( )
- Jeremy Lee Marcus, et al. ( )
- ITMedia Solutions LLC ( )
- Dinamica Financiera LLC ( )
- 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 ( )
- Federal Trade Commission Sends More than $822,000 to Students Deceived by Student Advocates’ Debt Relief Scam ( )
- Federal Trade Commission Sends More than $2 Million to Students Harmed by Debt Relief Scam ( )
- Federal Trade Commission Returns More Than $164,000 To Consumers Harmed by Bogus Mortgage Relief Scam ( )
- FTC Shuts Down Credit Repair Pyramid Scheme Financial Education Services, Which Bilked More Than $213 Million from Consumers ( )
- FTC Acts to Shut Down ‘The Credit Game’ for Running a Bogus Credit Repair Scheme that Fleeced Consumers ( )
- Remaining Defendants Banned from Providing Student Loan Debt Relief Services in Settlements with FTC ( )
- FTC Charges Two Florida-based Companies with Helping Student Debt Relief Scammers ( )
- FTC Sends Checks to People Who Lost Money to Student Loan Debt Relief Scheme ( )
- FTC Sends Refunds to People who Lost Money to Student Loan, Mortgage Debt Relief Scheme ( )
- FTC Sending More than $147,000 in Refunds to People Affected by Student Loan Debt Relief Scam ( )
- Operators of Student Loan Debt Relief Scheme Banned From Providing Debt Relief Services as Part of Settlement with FTC ( )
- FTC Sends More than $273,500 in Refunds to People Who Lost Money to Student Loan Debt Relief Scheme ( )
- FTC Sends More than $1.7 Million in Refunds to People who Lost Money to Student Loan Debt Relief Scam ( )
- Student Loan Debt Relief Scammer Brandon Frere Agrees to Settle FTC Charges ( )
- FTC Acts to Shut Down Unlawful Debt Collection Operation ( )
- FTC, State, and Federal Law Enforcement Partners Announce Nationwide Crackdown on Phantom and Abusive Debt Collection ( )
- Operators of Student Debt Relief Scheme Agree to Pay at Least $835,000 to Settle FTC Allegations ( )
- Scammers Who Used Robocalls to Target Cash-Strapped Consumers Banned from Selling Debt Relief Services and Telemarketing ( )
- 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 ( )
- 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 ( )
- Prepared Statement of Federal Trade Commission Acting Chair Rebecca Kelly Slaughter Concerning "Reviving Competition Part 3: Strengthening the Laws to Address Monopoly Power" ( )
- Opening Statement of Acting Chair Rebecca Kelly Slaughter Before the Subcommittee on Antitrust, Commercial and Administrative Law Of the Judiciary Committee U.S. House of Representatives ( )
- Oversight of the Federal Trade Commission ( )
- Statement of Commissioner Noah Joshua Phillips Regarding the Hearing on Oversight of the Federal Trade Commission ( )
- Prepared Statement by the Federal Trade Commission: Consumer Protection Issues Arising from the Coronavirus Pandemic ( )
- Written Testimony of Commissioner Chopra Before the House Judiciary, Subcommittee on Antitrust, Commercial, and Administrative Law: “Hearing on Online Platforms and Market Power, Part 3: The Role of Data and Privacy in Competition” ( )
- Opening Statement of Commissioner Chopra Before the House Judiciary, Subcommittee on Antitrust, Commercial, and Administrative Law: “Hearing on Online Platforms and Market Power, Part 3: The Role of Data and Privacy in Competition” ( )
- Written Testimony of Commissioner Chopra Before the U.S. House of Representatives Committee on Financial Services: “Examining Legislation to Protect Consumers and Small Business Owners from Abusive Debt Collection Practices” ( )