Protect Yourself and Report the Latest Frauds, Scams, Spams, Fakes, Identify Theft Hacks and Hoaxes
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Have you received an email or postal letter offering you credit card debt forgiveness, a grant to eliminate debts or a great "consolidation loan" or credit card rate? It most likely a scam.
Typically, the websites and offers look real, except they will almost immediately ask you to supply personal financial information , social security number, name, address, phone numbers, etc.
In 2024, various debt relief programs were available, but it's crucial to understand their scope and potential drawbacks. While some programs offered debt forgiveness or reduced payments, others focused on debt settlement or consolidation.
The very first thing to know is There are no government-sponsored programs to eliminate your credit card debt. Any offers claiming the government has a program to forgive your credit card dept is a scam.
The Federal Student Aid website outlined programs like the Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) plans, offering potential loan forgiveness after qualifying periods and other requirements and you making additional payments.
Some credit card issuers and for-profit debt relief companies offered options for partial debt forgiveness, often through negotiation and repayment plans. Which can destroy your credit score.
Companies like National Debt Relief, Freedom Debt Relief, and others provided debt settlement services, aiming to reduce debt balances through negotiation with creditors.
Some programs offered debt consolidation, combining multiple debts into a single loan, which could simplify payments and potentially lower interest rates, but often required good credit and specific debt types.
The IRS's offer in compromise program allowed individuals to settle tax debt for less than the full amount owed, offering a chance for relief.
Be cautious of programs claiming to offer government-backed debt forgiveness or quick solutions, as many are scams. The Federal Trade Commission (FTC) has taken action against debt relief companies that made false claims.
Utilizing debt relief programs, especially settlement, can negatively affect credit scores and future borrowing opportunities.
Debt settlement programs often come with fees, and it's crucial to understand the full cost before enrolling.
Debt relief programs can be complex, and it's essential to thoroughly research options and be prepared for a potentially extended timeframe.
Debt settlement relies on creditors agreeing to a reduced balance, which isn't always guaranteed.
Some programs may require documentation of financial hardship to demonstrate inability to repay debts.
* Don't pay for the promise of a loan. It's illegal for companies doing business
by phone in the U.S. to promise you a loan and ask you to pay for it before they
deliver. Requiring advance fees for loans also is illegal in Canada.
* Ignore any ad or hang up on any caller that guarantees a loan in exchange
for a fee in advance.
* Remember that legitimate lenders never guarantee or say that you will receive
a loan before you apply, or before they have checked out your credit status or
contacted your references, especially if you have bad credit or no credit
record.
* Don't give your credit card, bank account, or Social Security number on the
telephone, by fax, or via the Internet unless you are familiar with the company
and know why the information is necessary.
* Don't make a payment to an individual for a loan; no legitimate lending
organization would make such a request.
* Don't wire money or send money orders for a loan through Western Union or
similar companies. You have little recourse if there's a problem with a wire
transaction. Legitimate lenders don't pressure you to wire funds.
* If you are not absolutely sure who you are dealing with, get the company's
number in the phone book or from directory assistance, and call it to make sure
you're dealing with the company you think you are. Some scam artists have
pretended to be the Better Business Bureau or another legitimate organization.
* Check out questionable ads by calling Project Phonebusters in Canada toll-free
at 1-888-495-8501. If you live in the U.S. and think you've been a victim of an
advance-fee loan scam, report it to the FTC online at www.ftc.gov or by phone,
toll-free, at 1-877-FTC-HELP (1-877-382-4357).
It's a good idea to try to solve your debt problems with your creditors as soon
as you realize you won't be able to make your payments. If you can't resolve
your credit problems yourself or need additional help, you may want to contact a
credit counseling service. There are nonprofit organizations in every state that
counsel and educate individuals and families on debt problems, budgeting and
using credit wisely. There is little or no cost for these services.
Universities, military bases, credit unions, and housing authorities also may
offer low- or no-cost credit counseling programs. Check the white pages of your
telephone directory for a service near you.
The Toronto Strategic Partnership is a group of law enforcement agencies in the
U.S. and Canada that works together to prosecute cross border fraud. Formal
members include the Toronto Police Service, the Competition Bureau Canada, the
Ontario Ministry of Consumer and Business Services, the Ontario Provincial
Police, the U.S. Federal Trade Commission and the U.S. Postal Inspection
Service. Other partners include the Ohio Attorney General's Office, the Royal
Canadian Mounted Police, and the Police Services of York, Durham and Peel in
Ontario.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair
business practices in the marketplace and to provide information to help
consumers spot, stop, and avoid them. To file a complaint or to get free
information on consumer issues, visit www.ftc.gov or call toll-free,
1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet,
telemarketing, identity theft, and other fraud-related complaints into Consumer
Sentinel, a secure, online database available to hundreds of civil and criminal
law enforcement agencies in the U.S. and abroad.
In June 2024, the Federal Trade Commission announced that it took action to stop Prosperity Benefit Services, a student loan debt relief scheme that the agency says bilked more than $20.3 million from consumers seeking debt relief by pretending to be affiliated with the Department of Education. The FTC also charged that the company and its operators falsely claimed that they would take over consumers’ student loans to get them loan forgiveness that did not exist. A federal court temporarily halted the scheme and froze its assets at the request of the FTC, which seeks to end the defendants’ deceptive practices.
Type of Action FederalLast Updated June 28, 2024FTC Matter/File Number 2423041Case Status PendingThe Federal Trade Commission has stopped scammers who the agency says facilitated an operation to prey on
students seeking debt relief. The agency charges that the defendants pretended to be affiliated with the U.S.
Department of Education, used deceptive loan forgiveness promises, and falsely claimed they were offering relief
under the “Biden Loan Forgiveness” plan to lure students and collect millions in illegal upfront fees.
After the FTC filed a complaint seeking to end the deceptive practices, a federal court temporarily halted the
operations and froze the assets of Apex Processing Center and its owners.
In February 2024, under proposed orders settling the FTC’s charges, several defendants in the case—including Express Enrollment LLC, Intercontinental Solutions LLC, Ivan Esquivel, and Robert Kissinger were permanently banned from the debt relief industry and were ordered to turn over their assets to the FTC. In April 2024, the ringleader of the scheme, Marco Manzi, was also banned from the industry and was ordered to turn over assets as part of a settlement with the FTC.
Type of Action FederalLast Updated April 16, 2024FTC Matter/File Number 2323061 X230038Case Status PendingThe Federal Trade Commission has stopped Mission Hills Federal, a student loan debt relief scheme, alleging it bilked more than $23 million from thousands of consumers with false claims that it would service and pay down their student loans. After the FTC filed a complaint seeking to end the deceptive practices, a federal court temporarily halted the scheme and froze its assets. The FTC filed an amended complaint on August 27, 2019, adding Labiba Velazquez as an alleged defendant. On July 20, 2020, the court granted final summary judgment.
In June 2021, the defendants appealed the District Court’s granting of summary judgment. In June 2022, the Ninth Circuit Court of Appeals issued its decision, rejecting the defendants’ arguments and affirmed the District Court’s grant of summary judgment, ruling in favor of the FTC. In March 2024, the FTC sent more than $4.1 million in refunds to consumers harmed by the defendants.
Type of Action FederalLast Updated March 13, 2024FTC Matter/File Number 192 3105The Federal Trade Commission and the California Department of Financial Protection and Innovation (DFPI) are taking action against various companies doing business as Home Matters USA, Academy Home Services, Atlantic Pacific Service Group, and Golden Home Services America, and the owners of the companies, Dominic Ahiga and Roger Scott Dyer, for operating a sham mortgage relief operation that misled consumers and cost them millions. In the first case brought jointly by the two agencies, the FTC and DFPI allege that the companies charged consumers thousands of dollars with false promises they would negotiate with consumers’ mortgage lenders to alter their loans, at times even representing they were affiliated with government COVID-19 relief programs. A federal court has temporarily shut down the operation and frozen the assets of the defendants in the case.
The court’s orders bar the individuals and their companies from directly or indirectly engaging in telemarketing, debt relief services, and making any misrepresentations or unsubstantiated claims about any product or service.
Type of Action FederalLast Updated February 16, 2024FTC Matter/File Number 2123099Case Status PendingThe Federal Trade Commission is sending more than $222,000 in refunds to consumers harmed by a deceptive mortgage relief operation known as Lanier Law. The scheme collected thousands of dollars in upfront fees from homeowners by promising to lower their monthly payments but then failed to deliver.
Type of Action FederalLast Updated January 17, 2024FTC Matter/File Number 142 3038 X140039The Federal Trade Commission has stopped a pair of student loan debt relief schemes that it says bilked students out of approximately $12 million by using deceptive claims about repayment programs and loan forgiveness that did not exist. The agency also says the companies falsely claimed to be or be affiliated with the Department of Education and told students that the illegal payments the companies collected would count towards their loans.
After the FTC filed complaints seeking to end the deceptive practices, a federal court temporarily halted the two schemes and froze their assets.
In early October 2023, SL finance and BCO Consulting were permanently banned from the debt relief industry and ordered to turn over their assets as part of a settlement with the Federal Trade Commission.
Type of Action AdministrativeLast Updated October 6, 2023FTC Matter/File Number 2223138Docket Number X230025Case Status Closed
I was approved for a loan through a company called "Nationex Financial" they have a website > www.nationexfinancial.com. When I was approved for $8000 to consolidate credit card debt I was asked to make a down payment of 18%. I did as they asked and sent the money by Western Union to them in Canada. I was told my funds would be deposited into my account my noon the following day. I never received the money. Finally after calling them for 3 days I get a hold of the representative, there is no answer when you choose the customer service option and my "banking rep" never would answer or return my calls. Anyway, after getting a hold of her she says they need another $800 sent in order to provide life insurance so they can complete the loan. I advised I have insurance & am not sending them any more money. She then says I will be sent a refund check in 14-30 days. When I ask for some kind of confirmation to be emailed to me that I will receive my money back she says she will have her manager send one to me. I start to say that this whole thing is suspicious and she puts me on hold and sends me to her voicemail. So I call back and she answers again. I tell her I want her managers name and she transfers me to her voicemail again. I have a contract that was emailed to me that I signed and faxed back (I included it by email), it has a Michigan address on it, along with my receipt from Western Union. Please help me. This was all the money I had to my name.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
If you believe you may have fallen victim to an internet scam and wish to report it, please file a complaint with the U.S. government Internet Fraud Complaints Center
And please let us know about any suspicious calls or emails you receive. We look for patterns so that we can alert the authorities and victims to new scams, before it is too late!
For a comprehensive list of national and international agencies to report scams, see this page.