February 27, 2023

Debt Consolidation Fraud

Scammers know some people will be feeling the effects of a financial hangover from holiday spending. In an attempt to take advantage of this, they may call or email you with offers of debt consolidation or debt forgiveness. Often, these callers will say they are from a generic credit card company, such as Visa or Mastercard, and may offer to consolidate all of your debt for no or low interest. Others may tell you they can settle your debt for one lumpsum payment.

While these offers may sound tempting, credit card companies and other lenders will not reach out to you to offer to reduce your interest or payments or forgive your debt.

To avoid falling victim to these scams, be mindful to never share your personal information, such as social security number or driver’s license information with someone you don’t know. Similarly, these companies may ask you for credit or debit card information, such as the card number, the CVC and expiration date, or for your checking account information, such as your account and routing numbers. 

If you are uncertain about the legitimacy of these calls and offers, hang up and go to the company’s website. There should be a phone number on the website that you can use to contact the company and verify the request.