FTC Resources for Reporters
Credit Repair and Debt Relief Services
“Credit repair” scams claim they’ll remove negative information from credit reports even if it’s accurate, and “debt settlement” scams claim they’ll get your creditors to lower your debt. In both cases, many consumers end up not getting what they were promised ... if they get anything at all. The FTC has brought a large number of law enforcement actions against bogus credit-related services, and with other federal and state agencies, we’ve brought more than 250 actions to stop so-called debt relief providers that target consumers who can’t pay their credit card bills.
In 2010, the FTC amended its Telemarketing Sales Rule to protect consumers who are looking for help in settling their debts. For-profit companies that sell debt relief services (including debt settlement, debt negotiation, and credit counseling services) over the telephone can no longer charge a fee before they settle or reduce the customer’s debt. They also must clearly disclose key information that consumers need in evaluating these services.
News Releases
- FTC Charges that Auto Loan Schemes Falsely Promised They Could Stop Consumers' Cars from Being Repossessed – 04/04/2012
- At FTC's Request, Court Freezes Assets of Telemarketing Operation that Allegedly Made Bogus Claims about Reducing Consumers' Interest Rates – 01/18/2012
- Court Finds Defendant in Contempt for Violating Prior Court Order That Prohibited Him from Making Credit Repair Pitches to Consumers – 10/20/2011
- FTC Charges Credit Repair Operators With Misleading Credit Bureaus and Charging Consumers Illegal Up-Front Fees – 10/13/2011
- FTC Settlements Put Debt Relief Operations Out of Business – 05/26/2011
- Online Marketers of Bogus "$10,000 Credit Line" Ordered to Pay $3.7 Million, Cited for Contempt – 05/25/2011
- FTC Charges Online Marketers with Scamming Consumers out of Hundreds of Millions of Dollars with 'Free' Trial Offers – 05/17/2011
- FTC Files Contempt Charges Against Marketer of Credit Repair, Debt Relief, Food Stamp Services – 04/18/11
- FTC Obtains Court Order Barring Credit Repair Operation from Making False Claims and Charging Up-Front Fees – 10/28/2010
- FTC Obtains Court Order Requiring Credit Repair Operation To Stop False Claims; Family-Run Scam Surrenders Cars, Houses and Real Estate in Florida and South America – 09/01/2010
- Marketers Banned from Selling Credit Repair and Mortgage Relief Services; Ordered to Pay $7.5 Million – 04/22/2010
- Promoter of Credit Repair, Debt Relief Services to Settle FTC Charges – 03/18/2010
- Credit Repair Scammers Settle FTC Charges – 03/04/2010
- FTC Settlement Bans Marketers from Debt Relief Business – 01/20/2011
- FTC Action Puts Deceptive Marketer Out of the Debt Relief Business – 12/06/2010
- FTC Charges Marketers with Making Unsubstantiated Claims that They Could Eliminate Consumers' Debt – 12/02/2010
- Debt Relief Companies Prohibited From Collecting Advance Fees Under FTC Rule – 10/20/2010
Reports & Workshops
- 2008 FTC workshop transcript – Consumer Protection and the Debt Settlement Industry
Business Education
- Debt Relief Services & the Telemarketing Sales Rule
- Debt Relief Services and the TSR: What People Are Asking
- Credit and Finance
Consumer Information
- Ads for Auto Loan Modifications: You May Be Able to Drive a Better Deal with Your Lender
- Credit Repair: How to DIY and Avoid a Scam
- Money Matters: Dealing with Debt
- Knee Deep In Debt
- Building a Better Credit Report
- Free Annual Credit Reports
- Settling Your Credit Card Debts
- Before You File For Personal Bankruptcy: Information About Credit Counseling and Debtor Education
- Money Matters: Dealing With Debt
Congressional testimony
- Business Practices of Debt Relief Companies – August 12, 2010
- The Debt Settlement Industry: The Consumer’s Experience – April 22, 2010
- Credit Scores, Credit Reports and Their Impact on Consumers – March 24, 2010
- Financial Services and Products: The Role of the FTC in Protecting Consumers – Feb. 4, 2010
- How the FTC Works to Halt Fraudulent Schemes Exploiting the Economic Downturn and the Stimulus Package – Sept. 10, 2009
- The Consumer Credit and Debt Protection Act – May 12, 2009
- Consumer Credit and Debt: The Role of the FTC in Protecting the Public – March 24, 2009
