Debt Relief Scam UK: Spot a Fake Debt Help Company
Debt relief scammers prey on people struggling with money—here's how to protect yourself.
What a debt relief scam looks like
A debt relief scam is an unsolicited approach - by call, text, or advert - from a company claiming it can wipe out, dramatically reduce, or consolidate your debts, usually for an upfront fee. An example of the style is: We can write off up to 80% of your debt through a Government scheme. Pay a one-off £299 setup fee to get started today.
Free debt advice exists and is not sold through pressure calls like this. This guide shows the warning signs, how to find real help, and what to do if you have already paid a fee.
Why these scams are convincing
Financial difficulty is stressful, and a confident caller offering a quick fix can feel like relief. References to a "government scheme" or legal-sounding terms make the pitch feel official, and the promise of writing off most of your debt is exactly what someone struggling wants to hear.
The fact that protects you: free debt advice is available in the UK from organisations such as StepChange, National Debtline, Citizens Advice, and other advisers listed through MoneyHelper. A firm charging a large upfront fee before giving any real help is a serious warning sign.
Signs a debt relief offer is a scam
- You are contacted unexpectedly about your debts, often after searching online for debt help.
- It demands a large upfront fee before providing any real advice or help.
- It claims to write off most of your debt through a vague "government scheme".
- It pressures you to sign quickly, or discourages you from getting independent advice first.
- It is vague about which debt solution it is actually offering.
- The firm is not listed as FCA-authorised, or does not have permission for the service it is offering.
- It asks for your bank details or a continuous payment authority before explaining the real risks.
How the scam works
First, you are contacted or see an advert promising to wipe out or heavily reduce your debt. Second, a large upfront fee is requested before any real advice is given. Third, you may be signed up to an unsuitable or fake debt solution, or simply lose the fee outright. Fourth, your original debts and credit record are unaffected or made worse, and the company may become hard to contact.
Going to a free debt-advice organisation first is the most reliable protection.
How to find genuine debt help
Free debt advice is available in the UK - you do not need to pay an upfront fee just to get started.
- Contact a free debt-advice organisation such as StepChange, National Debtline, or Citizens Advice before speaking to any company that contacted you.
- Use MoneyHelper's debt advice locator if you need help finding free debt advice.
- Check that any debt management or advice firm is authorised by the FCA and has permission for the service it is offering.
- Be very wary of a large upfront fee, a vague "government scheme" claim, or pressure to sign quickly.
- Understand any solution's real effect on your credit file and legal position before agreeing to anything.
- Get independent advice before signing a debt management plan, IVA, or similar arrangement.
If you are unsure whether a linked site is genuine, our guide on Is This Website a Scam? A Practical Checklist Before You Buy helps, and our IVA Scam UK: Spot a Fake Debt Solution Firm guide covers fake insolvency-related offers in more detail.
If you have already paid a fee
If you paid by card, contact your bank or card issuer using the number on your card and ask about disputing the payment or a chargeback. If you sent money by UK bank transfer on or after 7 October 2024, mandatory APP fraud reimbursement rules may apply to Faster Payments and CHAPS transfers. The PSR rules include a 13-month claim window, a maximum claim amount of £85,000, possible exclusions, and a possible excess of up to £100. Report it to your bank as soon as possible.
Contact a free debt-advice organisation such as StepChange or National Debtline for genuine advice on your actual debts, regardless of what has already happened. If you shared identity or bank details, consider Cifas Protective Registration at cifas.org.uk and monitor your credit reports with Experian, Equifax, and TransUnion. Keep all correspondence, contracts, and payment records as evidence.
How to report a debt relief scam (UK)
If the contact came by email, forward it to the NCSC at report@phishing.gov.uk; if by text, forward it to 7726.
If you lost money, report it to Report Fraud at reportfraud.police.uk or on 0300 123 2040 if you are in England, Wales, or Northern Ireland. In Scotland, report to Police Scotland on 101. You can also report unauthorised financial-services activity to the Financial Conduct Authority. Keep all your documentation as evidence.
Frequently asked questions
Is all debt help paid for, or is free advice available?
Free debt advice is available in the UK from organisations such as StepChange, National Debtline, Citizens Advice, and others listed through MoneyHelper. You do not need to pay an upfront fee just to get started or receive advice.
A company says it can write off most of my debt through a 'government scheme' - is that real?
Treat it as a red flag. Legitimate debt solutions exist, but they are not sold through pressure calls and do not require a large upfront fee before you receive real advice. Check with a free debt-advice organisation first.
How do I know if a debt company is legitimate?
Check whether it is authorised by the FCA and has permission for the debt advice or debt management service it is offering. Be very cautious of any firm demanding payment before explaining your real options.
I've already paid an upfront fee to a debt company - can I get it back?
Possibly. If you paid by card, ask your bank about a chargeback. Eligible UK transfers since 7 October 2024 may fall under APP reimbursement rules, subject to limits and exclusions. Contact a free debt-advice organisation for advice on your actual debts.
How do I report a debt relief scam?
Forward scam emails to report@phishing.gov.uk and scam texts to 7726. Report it to Report Fraud in England, Wales, or Northern Ireland, or to Police Scotland on 101 in Scotland, and consider reporting unauthorised activity to the FCA.