How to avoid being scammed by debt relief companies

Florida residents likely hold a portion of America’s collective $1.4 trillion student loan debt. Those who are trying to manage their debt may be tempted by offers from companies or other parties claiming that they help them accomplish that goal. However, many of those companies may be doing nothing more than peddling scams to vulnerable debtors. In October 2017. the Federal Trade Commission, 11 states and the District of Columbia unveiled its “Game of Loans” initiative.

The aim was to crack down on those that engage in student loan debt relief scams. According to a lawyer from the FTC, scam artists began to focus on student loan debtors about five years ago. Before that, they mostly targeted credit card users who were struggling to manage their debts. Those who scam student loan debtors do so because of the size of the market and a lack of knowledge about other options to manage those obligations.

In some cases, they may say that they are connected with the Department of Education. Scammers may also claim that they can help enroll debtors into new relief programs when it may be possible for debtors to do so on their own. Debtors are advised to never pay up front for debt relief services and to question any company claiming to be associated with its student loan service provider.

Those who are seeking debt relief may want to meet with a bankruptcy lawyer to discuss their options. Although it is difficult to have student loan indebtedness discharged in bankruptcy, there are some exceptions that the lawyer can outline.