Buzz
In truth, Debt Council is a service that claims to connect consumers with various debt relief companies. However, such referral services often sell your personal information, which is then used for targeted advertising, ensuring you're bombarded with more of the same scams on social media.
According to Vice, rapper Jermaine Dupri has also participated in a video testimonial for Debt Council. It seems the artists might have recorded these videos through Cameo, a platform where fans pay celebrities for personalized messages.
If you're concerned about falling for a slick social media scam offering debt relief, keep an eye out for these red flags:
They promise quick results.
"If the ads are guaranteeing swift relief, chances are it's a scam," said Courtney Nagle, associate marketing manager at the National Foundation for Credit Counseling (NFCC). "If a consumer suspects these ads are fraudulent, they should report them" through the social media platform, she advised.
They assert connections to the government.
Attorney Steve Weisman, who runs the blog Scamicide, concurs that exaggerated promises are a major warning sign. Another red flag is claiming to have government ties. "The government doesn't endorse any specific debt relief companies," he clarified. "Be cautious with names, as they may appear to be government-linked." He cited Freedom Debt Relief, whose name sounds patriotic but recently agreed to a $25 million settlement with the Consumer Financial Protection Bureau (CFPB) for misleading its customers.
However, the most glaring red flag, according to him, is when a company demands upfront payment to assist with your debt. That's illegal.
Instead, seek out a certified credit counselor.
If you're feeling overwhelmed by debt, don't fall for "relief" offers. Instead, seek credit counseling from a certified nonprofit. Nagle emphasized that all nonprofit member agencies are accredited by the Council on Accreditation. The NFCC provides a free referral service for local nonprofit member agencies.
You can also consult the CFPB; its consumer complaint database lets you search for a company by name to check for any complaints against it.
Melinda Opperman, president and chief relationship officer at the nonprofit credit counseling agency credit.org, suggested checking the Better Business Bureau website for the company. "No agency with thousands of clients will be free of complaints," she acknowledged, but credit and debt counseling organizations should have a good standing with the Better Business Bureau.
Finally, another place to check for fraudulent companies is the Federal Trade Commission, which maintains a running list of individuals and organizations banned from offering debt relief services.
