Ask Lacey: Debunking Veteran Credit Forgiveness Scams and Offering Genuine Help

Welcome to Ask Lacey, your expert financial counselor and founder of MilMo. We’re here to answer your financial queries. Have a question? Submit it here.

A reader asks about the legitimacy of credit forgiveness for veterans. With many debt relief ads targeting veterans, it’s important to understand what’s real.

Identifying Legitimate Veteran Credit Forgiveness Programs

Most of these ads claiming to offer special credit card debt forgiveness programs just for veterans are misleading. Let’s clear up some misconceptions:

• There are no government-backed credit card debt forgiveness programs exclusively for veterans.
• Many of these ads are from debt settlement firms with high fees, often making false promises of special government programs.
• Some are outright scams intending to take your money.

Red flags to watch out for include: promises of “Veterans Credit Card Forgiveness Program”, guarantees of debt elimination, up-front fees, and high-pressure sales tactics. Read more about FTC’s rules for debt relief companies.

Detecting Scams and Misleading Offers

Recognizing scams can be challenging, especially when disguised in patriotic language. Here are some warning signs:

• Overpromising: Avoid offers that promise to erase your debt completely.
• Pressure tactics: Be wary of any push to make a quick decision.
• Request for personal info: Never provide personal information to unsolicited contacts.

If you suspect a scam, trust your instincts. You can report it to the Consumer Financial Protection Bureau or USA.gov.

Trusted Free Financial Resources for Veterans

Consider using trusted, free resources designed for veterans:

• Veterans Benefits Banking Program: In partnership with the VA, the VBBP connects veterans with banks offering free financial counseling and low-interest products.
• Military Aid Societies: Retired servicemembers can qualify for grants through military aid societies.
• Veterans Service Organizations: Organizations like the American Legion and VFW offer financial assistance.
• Military OneSource: Connect with a free financial counselor who specializes in military and veteran families.

Choosing a Debt Relief Company

If you consider using a debt relief company, exercise caution. Look for nonprofit status, accreditation, clear fees, and contracts, and ensure there’s no requirement to stop paying your creditors.

Remember, you’ve served your country. You deserve transparent and effective financial support without misleading sales tactics.

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