Can you spot debt relief scams that target the military?

By Bureau of Consumer Protection, Federal Trade Commission     August 2026

Scammers promise to solve your debt problems to trick you into paying them instead of your actual lender. If a caller offers to help you enroll in a special “military debt forgiveness” program, pause. That’s probably a scam. Learn how debt relief scammers might target the military and how to avoid the scam.

Questionable debt relief companies call out of the blue and use official-sounding names and phrases to suggest ties to the military. They might claim to be from a military bank or credit union, like USAA or Navy Federal, or a credit bureau like Equifax, Experian, or Transunion. But if the caller offers to help you reduce or settle your debt — after you pay a fee — that’s a sure sign of a scam. It’s illegal for a debt relief company to charge you before they help you. Some companies offer to enroll you in “exclusive” military debt relief or veteran debt forgiveness programs, but those programs might not even exist. If you pay upfront, you might lose your money and get nothing in return.

Some scammers pressure you to pay them instead of your real creditors. But missing payments on your real debt can lower your credit score and potentially compromise your personal affairs, inflicting severe emotional and financial distress. You could end up using your hard-earned savings to pay down the increased debt plus late fees and penalties.

Need help managing debt? Start by contacting your lender directly. Ask about your repayment options.

To avoid a debt relief scam:

• Never pay upfront for debt relief. Only scammers try to collect fees from you before they settle any of your debts.

• Find help. Financial counseling resources for Retired Soldiers and eligible family members are available through on-base personal financial managers or counselors on the Office of Financial Readiness website at: https://finred.usalearning.gov/pfcMap or on Military OneSource at: https://www.militaryonesource.mil/benefits/financial-counseling/, for up to one year after your official retirement date.

• Do some research. Check out any organizations you’re considering with your state attorney.

If you spot a debt relief scam, tell the FTC at: https://reportfraud.ftc.gov/.