Credit Repair and Debt Relief Scams
In this con, scammers promise to repair your credit or eliminate your debt… for a fee. They entice you with guarantees, such as a particular credit score increase or debt forgiveness, and charge upfront for their “services.” If you pay up, scammers either take the money and disappear, or fail to deliver all they promised.
How the Scam Works:
Scammers offering credit repair and debt relief services reach you in a variety of ways: online advertising, social media, or even calling directly. But no matter how they find you, their message is the same: For an upfront fee they can “guarantee” to raise your credit score and/or reduce or eliminate your debt.
These companies frequently promise – and charge for – impossible services. This includes removing past credit mistakes, such as late payments or a bankruptcy, from your credit report. They may offer to give you a new "credit identity” or negotiate with the lender or credit card company to completely eliminate the debt.
How to Spot This Scam:
To report a scam, go to BBB Scam Tracker.
To learn how to protect yourself, go to “10 Steps to Avoid Scams”.
Last Reviewed: March 24, 2017