Fake Debt Relief Scams
Bogus debt-settlement or consolidation services that charge fees and leave debts unpaid.
Last reviewed: 1 June 2026
What this scam is
A fake debt relief scam offers to reduce, consolidate or erase your debts but takes fees without delivering. Some collect payments meant for creditors and keep them, worsening your situation.
How it works
You respond to an ad promising to cut your debt dramatically. The company charges upfront or monthly fees and may tell you to stop paying creditors and pay them instead. Debts go unpaid, fees mount, and your credit is damaged.
Common red flags
- Guarantees to erase or slash debt
- Upfront fees before any service
- Advice to stop contacting or paying creditors
- Pressure to sign quickly
Sanitized example messages
Illustrative, sanitized examples. Personal details are replaced with placeholders such as [phone number] and [fake link].
We can legally wipe 70% of your debt. Pay a [amount] setup fee and stop paying your creditors today.
Payment methods used
- Upfront fees
- Monthly fees
- Bank transfer
Who is usually targeted
- People in debt
- Those facing collections
- Financially stressed households
What to do immediately
- Stop paying the company and keep contact with your creditors
- Seek free, regulated debt advice from a recognised charity or agency
- Report the company to your consumer protection regulator
Evidence to preserve
- Contracts and fee records
- Adverts and messages
- Company details
Where to report it
- Action Fraud (UK) — UK national fraud & cybercrime reporting centre
- FTC ReportFraud (US) — US Federal Trade Commission fraud reports
- FBI IC3 (US) — US Internet Crime Complaint Center
- Scamwatch (Australia) — Australian competition & consumer reporting
- Free debt advice services — Use a recognised non-profit (e.g. national debt charities) — never pay for guarantees
Always verify reporting routes and emergency contacts on the official government or agency website for your country.
Frequently asked questions
Where can I get safe debt help?
Use free, regulated, non-profit debt advice services in your country. Be wary of any company that guarantees results, charges large upfront fees, or tells you to stop paying creditors entirely.