Who: The FTC takes complaints about deceptive credit repair and debt relief.
When to use: Use when a company charged upfront or made false promises.
What to prepare:
- Company name
- What they promised
- Amount paid
Go to FTC ReportFraud~5 min
Category: Financial & banking
Debt & credit repair scams
How it often plays out
A company promises Elena they can remove accurate negative items from her credit report and boost her score for $799 upfront. She pays; months later nothing has changed. Many such “credit repair” services are illegal—no one can lawfully remove true, accurate information from your report for a fee. Another common scam is "debt elimination": someone claims a legal loophole or "sovereign" method can make your debt disappear for a fee; it cannot, and you may lose money and still owe the debt.
How to spot it
Common red flags: pressure to act immediately, requests for payment by gift card or wire, offers that seem too good to be true, or unsolicited requests for your personal or financial details.
Do's and don'ts
Do
- Check the CFPB for legitimate options and your rights.
- Save any contracts, ads, or communications.
- Report to the FTC and CFPB.
Don't
- Pay upfront for credit repair or debt settlement promises.
- Believe claims that accurate negative items can be removed for a fee.
- Use "debt elimination" or "sovereign" schemes that charge for fake loopholes.
Summary & what to do
Scammers promise to fix your credit, settle debt, remove accurate negative items, or "eliminate" debt with a fake legal loophole—for an upfront fee. Many of these are illegal and do not deliver. Report to the FTC and CFPB.
What to do right now
- Do not pay upfront for credit repair or debt settlement promises. Check the CFPB for legitimate options.
- Save any contracts, ads, or communications.
- Report to the FTC and CFPB.
Where to report
Who: The CFPB takes complaints about financial products and services.
When to use: Use for problems with debt relief or credit repair companies.
What to prepare:
- Company
- What happened
CFPB complaint portal~10 min
Build your knowledge: Recommended reading — books & free websites on financial literacy and fraud awareness