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Some debt relief companies help, and some take fees and leave people worse off. Here are the red flags the FTC and the CFPB publish, the questions to ask, and how to check any company. We apply the same checklist to ourselves.
Know which kind of help you are vetting
Fits if
Watch out for
Fits if
Watch out for
The checklist, applied to us
Each row is a red flag from the FTC or the CFPB, how to check any company for it, and how we answer it. Where our answer is still being confirmed, we tell you what to ask.
| What to check | Our answers How we answer | The red flag | How to check anyone |
|---|---|---|---|
| Fees | No fee until a debt is settled. The fee is a percentage of your enrolled debt, set individually, and charged only after a settlement is reached. Ask us for your percentage in writing before you sign. | Charges any fee before it settles a debt or you have made a payment under the settlement. | Ask exactly when the first fee is charged, and get every fee in writing. |
| Promises | We do not guarantee any amount, percentage or timeline. Every figure on this site is labeled illustrative. | Guarantees a percentage, a timeline, or that all your debt will go away. | Ask what happens if a creditor refuses to settle, and read that part of the contract. |
| Stopping payments | Your deposits go to your own account, so enrolled accounts fall behind. We explain the credit, collection and lawsuit risks before you enroll. | Tells you to stop paying or stop talking to creditors without explaining what happens next. | Ask what happens to your credit and to lawsuits while you save. |
| Government claims | We are a private company. We are not a government agency or a government program. | Claims a "new government program" will pay off your credit card debt. | There is no such program for credit card debt. Walk away. |
| Your savings | Your savings go into a dedicated account in your name at a federally insured bank, held by an independent processor, that you can view online 24/7. You can withdraw the money in your dedicated account at any time, and leave the program, without a penalty from us. Ask us for the name of the account provider. | Holds your savings in its own account, or charges a penalty to take them out. | The account must be in your name at an insured bank, and you can withdraw at any time. |
| State registration | We are confirming our state registrations with counsel, and our licensing page will list each number. Until then, ask us for the number in your state before you sign. | Cannot tell you whether it is licensed or registered in your state. | Ask for the number, then check it with your state regulator or attorney general. |
| Nonprofit claims | We are a for-profit company. We are not a nonprofit or a credit counseling service. | Implies it is a nonprofit or a credit counselor when it is not. | Ask directly. A credit counselor sets up a repayment plan; it does not settle debts. |
| Complaints | Search our legal name, Clear Financial LLC, the same way. Ask us who handles complaints and how fast we respond. | A pattern of complaints about fees, refunds or missed settlements. | Search the CFPB complaint database, your state attorney general and the Better Business Bureau. |
If a debt management plan or bankruptcy fits you better, we will tell you so. Free nonprofit credit counseling is a good first call for many people, and we will point you there when it is.
The CFPB (CFPB, opens in a new tab) and the FTC (FTC, opens in a new tab) publish nearly the same list. If a company does any of these, the FTC says you are likely dealing with a scam.
When debt settlement is sold over the phone, the FTC's Telemarketing Sales Rule (FTC, opens in a new tab) applies. Before you enroll, the company must tell you the fees, how long it will take to make an offer to each creditor, how much you must save first, and what can go wrong.
The rule also bans upfront fees (eCFR, opens in a new tab). A fee can be charged only after a debt is settled and you have made at least one payment under that settlement.
Did a company skip any of these disclosures? The FTC's advice is simple: walk away.
Debt settlement is regulated state by state. Ask for the company's license or registration number in your state, then confirm it with your state regulator or attorney general (USA.gov, opens in a new tab), who can also tell you about complaints.
Next, search the company's legal name in the CFPB complaint database (CFPB, opens in a new tab) and with the Better Business Bureau. Read how the company responded, not just how many complaints there are.
No complaints is not proof a company is legitimate. The FTC makes the same point about checking any company.
Get every answer in writing. A company that will not put it in writing has answered the question.
We charge no fee until a debt is settled, and you approve every settlement before it is paid. Your savings sit in an account in your name. We guarantee no amount or timeline, and we are not a nonprofit or a credit counseling service.
Some answers are still being confirmed. Ask us for your fee percentage, our account provider and our registration in your state, and see our licensing and disclosures page. Our how we make money page covers how we are paid.
If we cannot answer one of these questions to your satisfaction, do not enroll. Call 866-659-7966 and ask.
Sometimes the best company is none. The CFPB notes (CFPB, opens in a new tab) that you can often negotiate with a creditor yourself, for free, and many lenders have standard settlement policies.
Things you should know
Read these before you enroll anywhere, including with us. They apply to every debt settlement program.
Notes on the figures and claims above
Straight answers
Rather hear it from a person? 866-659-7966
Not when the service is sold over the phone, which covers most online sign ups that end in a call. The fee can come only after a debt is settled and you have made a payment on it.
Upfront fees, guaranteed results, "government program" claims and pressure to cut off your creditors are the classic signs. Check the company with your state attorney general and the CFPB complaint database.
Read them with care, especially lists written by companies that sell debt relief. Complaint records at the CFPB and your state attorney general are harder to fake.
Yes. Under the FTC rule, the money in your dedicated account is yours, and you can withdraw it at any time without a penalty.
Where the facts on this page come from. Each link opens the original in a new tab.
Next step
Check your state and see an illustrative estimate, fee included. Then ask us every question on this page before you decide.
Four short steps
Your estimate first. Contact details last.
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