While taking a peaceful scroll through your Facebook feed, you may have seen videos of Snoop Dogg advertising a debt relief program from something called the Debt Council.
“If you owe $10,000 on your credit card, look. You can qualify for a program and get you thousands of your dollars back by making a 15-minute phone call,” he said in one video cited by Vice News. Debt Council claimed to be able to erase debt through a government loophole and paid $274,000 for ad campaigns on Facebook and Instagram, Vice News’ investigation explained. But there is no such government loophole.
In reality, Debt Council is a referral company claiming to match consumers with other debt relief firms. But referral services often sell your contact information, which can then be used to market to you directly- or make sure that you get even more ads of similar ilk via social media platforms.
Rapper Jermaine Dupri has also done a video testimonial for Debt Council, according to Vice. It appears that the artists may have created the videos through Cameo, a service that allows fans to pay for personalized messages from celebrities.
When Vice News alerted Facebook to the ads, Facebook flagged them for violating its policy for deceptive or misleading business practices and its rule against imagery of public figures to get people to buy into a scam.
Worried that you could get lured in by a slick social media scam offering debt relief? Look for these signs of trouble:
They promise fast results
“If the ads are promising quick relief, it’s likely a scam,” said Courtney Nagle, associate marketing manager at the National Foundation for Credit Counseling (NFCC). “If a consumer sees these type of ads and thinks they are a scam, they should report them” via the social media platform, she said.
They claim ties to the government
Attorney Steve Weisman, who blogs at Scamicide, agreed that overpromising is a big red flag. Another is claiming to be affiliated with the government. “The government doesn’t authorize any particular people as far as company for debt relief [go],” he explained. “You’ve got to be careful with the names, because they might seem to indicate that they’re affiliated with the government.” He mentioned Freedom Debt Relief, which has a very patriotic sounding name but recently reached a $25 million settlement with the Consumer Financial Protection Bureau (CFPB) for misleading customers.
But the biggest red flag of all, he said, is when a company wants money up front to help you with your debt. That’s illegal.
Instead, look for a certified credit counselor
If you’re feeling overwhelmed with debt, don’t look for “relief.” Instead, look for credit counseling from a certified nonprofit. Nagle said all nonprofit member agencies are accredited by the Council on Accreditation. The NFCC offers a free referral service for local nonprofit member agencies.
You can also check the CFPB; its consumer complaint database allows you to search for a company by name to see any complaints against it.
Melinda Opperman, president and chief relationship officer at nonprofit credit counseling agency credit.org, recommended checking for the company on the Better Business Bureau website. “No agency with thousands of clients will be completely free of complaints,” she warned, but credit and debt counseling organizations should be in good standing with the Better Business Bureau.
One last place to check for bad actors: The Federal Trade Commission keeps a running list of people and companies that have been banned from providing debt relief
