• Home | 
• About the OCC | 
• Contact Us | 
• Dictionary | 
• Search:  

Answers about Debt Elimination and Fraudulent Schemes

Select from the following questions about debt elimination and fraudulent schemes.

I received an offer from an entity promising to eliminate certain debts that I owe. An OCC complaint form was included in the information they sent. I was asked to sign it but provide no additional information. Is this a legitimate offer?

No. You should contact your bank or lender if you have any questions about the debts you owe. Your lender is in the best position to work with you to correct mistakes or create a workout plan. If you need to modify your obligations or request that a lender not exercise its rights with respect to a debt (for example, its right to foreclose on mortgage property if you are in default), you should contact the lender directly to discuss whether mutually satisfactory arrangements can be made, without delay.

I received an offer from an entity that stated it could eliminate certain debts that I owe. I am having trouble making payments on my debts. I have the money to pay the fee they are requesting. Why shouldn't I accept the offer?

You should not accept the offer because this is not a legitimate method of satisfying debts. The offers have no substance in law or finance. You cannot eliminate an obligation to pay a debt, simply by paying someone a fee regardless of the amount you owe. Your lender will not recognize these arrangements as legitimate and may take legal action against you. You should contact your lender directly if you are having trouble making payments.

I am current on all of my loan payments. Why would an entity other than my bank or creditor offer to help me eliminate my debt?

These companies focus on consumers who are current on their debts as well and those who may be facing foreclosure. The perpetrators claim that they can eliminate or cancel various types of debt, including mortgages, credit card balances, student loans, auto loans, and small business loans. All are designed to take your money by collecting fees for doing nothing, stealing your identity, or both.

If they steal your identity, they could run up substantial debts before you become aware of it. Someone with years of good credit history can have it ruined very quickly by using one of these companies.

I am concerned that my bank may be preparing to foreclose on my mortgage. Where can I get help?

You should contact your lender first. Your lender is typically in the best position to know the facts of your situation and would be best able to assist you in correcting mistakes or working out a payment plan. You may also benefit from credit counseling from a qualified nonprofit credit counseling agency. For a list of such organizations that have been approved by the Department of Housing and Urban Development, you may call (800) 569-4287 or visit the following website: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

The Center for Foreclosure Solutions is another source for consumers who are concerned about foreclosure. The Center provides counselors 24 hours a day, seven days a week. They can be reached at 1-888-995-HOPE (4673).

I am in financial straights. What are the legitimate options for satisfying my debt?

There are three basic methods for satisfying all debt owed:

• Pay the debt in full.
• Negotiate new terms directly with the lender.
• Declare bankruptcy in a court of law.

Keep in mind that bankruptcy will be reported on your credit history for ten years and may make it very difficult for you to acquire credit in the future.

Who should I contact to report a fraudulent scheme?

The following is a list of law enforcement agencies you can contact for assistance:

All debt elimination scams should be reported to the Federal Trade Commission (FTC) by telephone at 1-877-FTC-HELP or via an electronic online complaint form, which can be completed on their website at www.ftc.gov.
• If the fraudulent scheme is presented via the Internet or e-mail, contact the Internet Crime Complaint Center (IC3) at http://www.ic3.gov.
• If the fraudulent scheme is presented by an individual or at a seminar, you should contact the local office of the Federal Bureau of Investigation (FBI) or the local financial fraud law enforcement organization.
• If the fraudulent scheme is presented via the U.S. Postal Service, you should file a complaint with the U.S. Postal Inspection Service, 222 S. Riverside Plaza, Suite 1250, Chicago, IL 60606-6100 or via email at https://postalinspectors.uspis.gov/forms/MailFraudComplaint.aspx.

For addition detailed information on Debt Elimination Schemes, please visit our website at www.occ.treas.gov/AntiFraudConsumer.htm.

Phone: 800-613-6743
TDD Number 713-658-0340
TTY: (800) 877-8339 (via a relay service)

Web Site Privacy Policy | Web Site Policies | Office of the Comptroller of the Currency | Department of the Treasury | USA.gov
No Fear Act | Freedom of Information Act | Contact Webmaster