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.
- American Financial Benefits Center, et al. ( )
- ACRO Services ( )
- Arete Financial Group ( )
- GDP Network LLC (YF Solution) ( )
- SL Finance and BCO Consulting ( )
- Stratics Networks ( )
- Michael and Valerie Rando, et al., FTC v. ( )
- Student Advocates Team, LLC, et al. ( )
- GAFS Group, LLC, et al. ( )
- Elegant Solutions, Inc. (Mission Hills Federal) ( )
- Moneta Management Inc. ( )
- SLAC, Inc. ( )
- Manhattan Beach Venture, LLC, et al. ( )
- AmeriDebt, Inc. ( )
- BoostMyScore LLC ( )
- Impetus Enterprise, Inc. ( )
- Jeremy Lee Marcus, et al. ( )
- ITMedia Solutions LLC ( )
- Dinamica Financiera LLC ( )
- 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 ( )
- 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 ( )
- 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 ( )
- 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 ( )
- 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 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 ( )
- Prepared Statement of Acting Chairwoman Rebecca Kelly Slaughter: Strengthening the Federal Trade Commission's Authority to Protect Consumers ( )
- 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 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 ( )
- Statement of Commissioner Noah Joshua Phillips Regarding the Hearing on Oversight of the Federal Trade Commission ( )
- Oversight of the Federal Trade Commission ( )
- Prepared Statement by the Federal Trade Commission: Consumer Protection Issues Arising from the Coronavirus Pandemic ( )
- 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 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” ( )