FTC warns military members and veterans about debt relief scams
FTC Consumer Alerts says scammers may pose as trusted institutions, demand upfront fees, and push fake military debt relief offers.
The Federal Trade Commission says scammers may be targeting military members and veterans with fake debt relief offers, including claims about nonexistent military debt forgiveness programs and demands for upfront fees.
In a Consumer Alerts post published July 6, 2026, and later edited July 17, the FTC said callers may contact people out of the blue, use official-sounding language and suggest ties to trusted institutions. The agency said a debt relief company asking for payment before helping is a clear warning sign.
The FTC said people who give money to a scammer may miss payments to their real lender. That can lead to late fees, penalties, lower credit scores and problems with security clearance.
The agency said scammers may falsely claim to represent USAA, Navy Federal, Equifax, Experian or TransUnion. It also warned about offers framed as “exclusive” military debt relief or veteran debt forgiveness programs that may not exist.
“That’s probably a scam,” the FTC said in the opening of the alert. The agency said it is illegal for a debt relief company to charge a fee before providing help.
The FTC advised consumers to contact their lender directly and ask about repayment options. It also told people who spot a scam to report it at ReportFraud.ftc.gov.
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Editorial note: This article was prepared with AI assistance and requires editorial review before publication.
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