Say you’re struggling to pay off your credits cards — which is already difficult with high interest rates — and you hear about a company that promises to reduce or eliminate your credit card debt for a fee. Sounds great, right? But how can you tell if that offer is legitimate or a scam?
The FTC recently announced settlements with the operators of a deceptive debt relief scam. The FTC sued the three operators and their related companies (which went by multiple names including ACRO Services) for taking tens of millions of dollars from people by falsely promising to eliminate or reduce their credit card debt. The scam charged people fees in the thousands of dollars and even told them to stop making payments to their credit card companies — leaving people in a far worse position — with damaged credit and owing their original debts plus thousands in fees and interest.