Debt Relief Scams
January 6, 2026
Debt relief scams target individuals with large amounts of credit card debt by falsely claiming to negotiate with creditors on the consumer’s behalf. Scammers charge significant fees upfront and then fail on their promises to lower the individual’s debts.
The two most common ways to spot a debt relief scam include:
- You receive unsolicited contact – If a company contacts you first about lowering or eliminating your debt, it is most likely a scam.
- They request fees upfront – Never pay upfront for debt relief, as this is one of the most obvious signs of a scam.
The Federal Trade Commission (FTC) has taken significant measures to protect consumers from these scams. Its Telemarketing Sales Rule prohibits for-profit companies that sell debt settlement services over the phone from collecting fees before they settle or reduce the consumer’s debt.
If you have received unsolicited contact from a debt relief agency and believe the operation to be a scam, report it to the FTC at reportfraud.ftc.gov.