Callers promise service members a "military debt forgiveness program" — no such program exists
Callers promise to enroll service members in a "military debt forgiveness" program. No such government program exists. They charge illegal upfront fees, collect your Social Security Number and bank info, and deliver no debt relief.
Also known as: military debt forgiveness scam, Veterans Credit Forgiveness program scam, veteran debt relief fraud, military loan forgiveness scam
Already happened to you? Do this in the next few minutes
- 1 Call your bank or card's fraud line right now. Use the number on the back of your card — not any number from the message or caller. Ask them to stop or reverse the payment and freeze the account.
- 2 If you paid by gift card, wire, or an app (Zelle, Venmo, Cash App): contact that company immediately and report it as fraud. Acting fast sometimes recovers the money.
- 3 Report to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov. The sooner, the better.
What to do right now
- 1 Never pay upfront fees for debt relief — it is illegal for any debt relief company to collect fees before delivering results
- 2 Hang up on anyone claiming to offer a special military or veteran debt forgiveness program — no such program exists
- 3 If you have legitimate VA benefit debt, contact the VA Debt Management Center directly at 1-800-827-0648 or va.gov/resources/debt-and-billing
- 4 For free financial counseling, contact Military OneSource (1-800-342-9647), your installation's financial readiness office, or a nonprofit credit counseling agency approved by the NFCC
- 5 If you provided your SSN or bank details, place a free fraud alert with the credit bureaus (Equifax, Experian, TransUnion) and contact your bank immediately
- 6 Report to the FTC at https://reportfraud.ftc.gov and the FBI's IC3 at https://www.ic3.gov.
Red flags
- ⚠ No government-backed credit card or personal loan forgiveness program exists specifically for veterans or service members — anyone claiming otherwise is a scammer
- ⚠ The caller demands an upfront fee before settling any debt — charging advance fees for debt relief is illegal under FTC rules
- ⚠ Promises to eliminate all your debt or guarantee creditor forgiveness are impossible — no company can make this guarantee
- ⚠ Pressure to act immediately so you don't miss the 'enrollment window' — real debt counseling is always available
- ⚠ They ask for your Social Security Number, VA benefits login, bank account number, or debit card to 'verify eligibility' or 'set up your relief account'
- ⚠ The organization has an official-sounding name like 'Federal Veterans Debt Assistance' or 'Military Service Relief Fund' but has no .gov website
Known variants
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Callers target seniors and veterans by impersonating their bank, credit card company, or a government agency, claiming to offer debt settlement. They charge large upfront fees and deliver nothing. A federal court permanently banned the operators of one such scheme (Mediwerks, Resolution Specialists, Futura Capital) in Oct 2026 with a $106.8M judgment.
Last seen: 10/22/2026
Sources
- FTC — Can you spot debt relief scams that target the military? (Jul 6, 2026)
- FTC — Talk about scams during Military Consumer Month 2026 (Jul 6, 2026)
- FTC — Looking for debt relief? Here's how to avoid a scam (Mar 2026)
- Military Consumer — Looking for debt relief? Here's how to avoid a scam
- Military.com — Ask Lacey: Are Ads for 'Veteran Credit Forgiveness' Legit?
- FTC — Court Permanently Shuts Down Debt Relief Operation That Impersonated Government and Business Entities (Oct 22, 2026)