SCAM ALERT: Debt-Relief Companies Are Preying on People Who Are Already Struggling
Household debt in this country just hit $18.8 trillion, and credit card delinquency is at its highest point since the Great Recession. Scammers know it — and they’re increasingly targeting people who are already stressed about money with fake promises of debt relief.
What’s Happening
AARP recently reported on just how bad this has gotten. Earlier this year, the FTC had to step in and issue a restraining order against two companies, New Education Relief and Edvantage Relief, who were cold-calling people (including people on the federal Do Not Call registry) claiming to be affiliated with the Department of Education or student loan companies. They charged upfront monthly fees as high as $1,400 and pulled in nearly $9 million before the FTC shut them down.
It’s not just fake companies, either. Scammers are directly impersonating real, well-known debt-relief companies like National Debt Relief — sending professional-looking emails with real logos, fake accreditation badges, and links to a “free consultation.” One recent scam email was sent to likely thousands of people using a nonsensical sender address, but the email itself looked convincing enough to fool plenty of people.
Here’s the part that makes this scam particularly effective: it targets people at their most vulnerable. Being deep in debt is stressful, and that stress makes people more likely to grab onto anyone offering a way out — which is exactly what scammers are counting on.
Red Flags
- A debt-relief company contacts you first — by phone or email — rather than you seeking them out
- They ask for payment before any debt is actually settled (this is illegal for legitimate debt-relief companies to do)
- Promises to erase your debt entirely, fast, with no real work on your end
- Pressure to decide today, or the “offer” disappears
- Requests to pay by gift card or cryptocurrency
What To Do
A real debt-relief company will slow down, explain the process, and send you a real contract — they won’t rush you. If you’re genuinely looking for help with debt, go through the nonprofit National Foundation for Credit Counseling (nfcc.org or 833-746-7578) for a free consultation, or check a company against the Better Business Bureau’s list of accredited debt-relief services before paying anyone anything.
If you’ve already been targeted, file a complaint with the BBB and the FBI’s Internet Crime Complaint Center (ic3.gov). You can also call the AARP Fraud Watch Network Helpline at 877-908-3360 for free guidance and support.
📜 Read the full AARP article: “Debt-Relief Scams Steal From People Desperate for Financial Help”
Been contacted by someone claiming to offer debt relief? Tell us about it — it helps us track what’s currently making the rounds.