4 Red Flags of Debt Relief Scams

January 20, 2016

Red Flags of Debt Relief Scams

Red Flags of Debt Relief Scams

Each year, at least 4 million Americans are the victims of debt relief scams – including credit repair scams, mortgage relief scams, and other debt relief scams.1 While being scammed can be maddening to anyone, it can be incredibly damaging for those who are already struggling with serious debt.

To help you avoid being victimized by a debt relief scam, here are some red flags to keep in mind. Companies and/or individuals who may be running debt relief scams tend to include those that:

  1. Charge upfront fees – Be suspicious of any company that requires you to pay fees before resolving any of your debt. This includes pressuring you in to making “voluntary” contributions before reviewing your debt situation and/or helping you resolve any of your debts.
  2. Require credit card numbers for more information about their services – Information about legitimate debt relief services will always be free, including info about fees and your rights. So if you are being asked to pay a fee to find out more about some service, walk away, and do not provide any personal information to that party.
  3. Guarantee they can solve your debt problems – There are no guarantees for making debt disappear. That’s because, depending on the debt relief option you pursue, a court may need to approve your case, a creditor (or many creditors) many need to agree to a settlement, you may not be able to continue payments on a debt consolidation loan in the future, etc. So, be extremely cautious of any company feeding you some “too-good-to-be-true” lines – the chances are that they are blowing smoke to screen a scam.
  4. Demand that or pressure you into enrolling in a debt management plan (DMP) – Enrolling in a DMP should always be your choice, a voluntary, unpressured action. And, before this enrollment process occurs, legitimate debt relief companies will typically provide budget training, make sure your creditors have accepted you, etc. So, be suspicious if you are being pushed into enrolling into a DMP.

Contact Colorado Springs Bankruptcy Lawyer Jon B. Clarke

If you are struggling with debt, it’s time to contact Colorado Springs Bankruptcy Lawyer Jon B. Clarke.

Call (303) 779-0600 or email our firm using the contact form on this page to find out more about your best debt relief options, as well as how Attorney Jon B. Clarke can help you obtain the financial fresh start you need and deserve. You can also complete our Business or Consumer Debtor Analysis Form when you are ready for more precise answers and professional advice.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.


1: According to the Federal Trade Commission (FTC)

Categories: Debt, Debt Relief Scams, Financial Tips