Is the Financial Hardship Loan Center Legit? Uncovering the Truth Behind this Debt Relief Scam

What is the Financial Hardship Department scam? What do you do if you receive a scam email or call? Read more.

Gaetano DiNardi is a growth advisor to software companies like Docebo, Cognism, and Workvivo. As the former head of organic growth at Aura, Gaetano helped launch the companys SEO program. He has also written for publications like HBR, Fast Company, and Nasdaq.

Alina Benny is an Aura authority on internet security, identity theft, and fraud. She holds a bachelors degree in Electronics Engineering from the Cochin University of Science and Technology and has nearly a decade in content research. Twitter: @heyabenny

The COVID-19 pandemic has left many Americans financially devastated. With rising inflation, job losses, and pay cuts, an increasing number of people are struggling with debt and looking for relief options. This is where debt relief scammers have found an opportunity to exploit vulnerable individuals.

One such scam that has been making the rounds is the fake Financial Hardship Loan Center Scam callers claiming to represent this nonexistent center offer attractive loan packages and debt relief solutions. But it’s all a ruse to steal money and personal information from victims

In this article, we will uncover the truth behind the Financial Hardship Loan Center scam. We will analyze real victim accounts and provide tips to identify and avoid such predatory schemes.

How the Financial Hardship Loan Center Scam Works

The scammers begin by cold calling or sending unsolicited emails to potential victims. They claim to be representatives from the Financial Hardship Loan Center, an alleged government agency that provides loans and grants to individuals facing financial difficulties.

To make their scheme appear credible, the scammers often use technical jargon and mention legitimate-sounding departments within the fake center like “Debt Forgiveness Department” or “Hardship Assistance Division” They may even spoof official government phone numbers on caller IDs

Once they have caught the victim’s interest, the scammers will offer an attractive financial hardship loan or debt relief program. They will promise to clear the victim’s credit card or medical debts, reduce monthly payments, or approve a $30,000 – $40,000 loan at low interest rates.

To proceed, the scammers instruct victims to pay an upfront processing fee ranging from $200 – $1000. They urge victims to act quickly before the amazing offer expires. The scammers often emphasize that this is a limited time opportunity available only to select individuals who meet certain criteria.

If the victim pays the fee, the scammers disappear with their money. The promised loan never materializes. Victims also risk having their personal and financial information stolen for identity theft.

Real Accounts of the Financial Hardship Loan Center Scam

Several victims have shared their experiences online after encountering the Financial Hardship Loan Center scam:

  • A Redditor received a scam voicemail offering a $36,000 financial hardship loan to pay off debts. The scammer identified himself as “David” from the “Financial Hardship Loan Center” and provided a callback number. He instructed the victim to call back urgently to claim this loan.

  • Another victim reported getting a call from a man named “Michael Watson” claiming to be from the Financial Hardship Center in Washington D.C. He offered the victim a $10,000 grant and pressured her to pay $200 as a processing fee.

  • Multiple individuals reported receiving emails from the “Financial Hardship Loan Center” promising loan approval if they paid fees of $500 – $1000 immediately. The emails appeared to come from addresses like [email protected] and [email protected].

  • A victim received a scholarship and grant offer over the phone from the “Financial Hardship Department”. When he asked for written information to review, the scammer hung up immediately.

These accounts demonstrate how the scammers rely on high-pressure tactics, unrealistic offers, and fabricated authority to deceive victims.

5 Signs that Indicate the Financial Hardship Loan Center is a Scam

While the con artists behind this scheme are cunning, their scam has several loopholes. Watch out for these telltale signs that indicate the Financial Hardship Loan Center is a fake entity:

  • They demand upfront fees – No legitimate lender or government agency charges upfront processing fees for loans or grants. This is an outright scam tactic.

  • They ask for personal information – The scammers may ask for sensitive information like SSN, bank account numbers etc. ostensibly for “verification”. Never share such personal details with unsolicited callers.

  • They call repeatedly – Scammers will flood your phone with repeat calls urging you to act now. These high-pressure tactics are meant to overwhelm your judgment.

  • Their stories keep changing – From loan offers to debt relief programs, the scammers will morph their narratives if victims seem skeptical. Their inconsistencies expose the scam.

  • No written information provided – Authentic financial institutions always provide written descriptions of loan products, terms and eligibility criteria. The fact that these scammers avoid written communication is a huge red flag.

How to Avoid the Financial Hardship Loan Center Scam

While scammers are crafty, you can protect yourself by being vigilant and skeptical. Apply the following tips to steer clear of the Financial Hardship Loan Center fraud:

  • Be wary of unsolicited calls/emails – Do not trust offers that come out of the blue over call or email. Most legitimate businesses will not contact you randomly with monetary offers.

  • Verify the source – Call the company back on an independently sourced number to confirm the caller’s identity. You can also visit their official website to check if the loan offer is mentioned there.

  • Check for red flags – Watch out for urgent demands for personal details and upfront fees. No genuine lender will operate this way.

  • Avoid clicking on links/attachments – The scammers may send malware-loaded emails to steal your data. Do not click anything within unsolicited emails.

  • Consult a financial advisor – Run the offer by a banker or financial advisor to analyze if it aligns with your needs and is feasible. Getting a professional opinion can help uncover such scams.

  • Report scammers – Alert authorities like the Federal Trade Commission if you identify a scammer. You can also report them to the phone carrier being used for spoofing.

What To Do if You Already Paid the Scammers

If you’ve fallen prey and paid the scammers, take these steps immediately to limit the damage:

  • Call your bank and stop any pending payments to the scammers. Place holds on any withdrawal capabilities the scammers may have now.

  • Notify your credit card company and dispute the charges as fraudulent. Request new card numbers.

  • Place fraud alerts and long-term credit freezes on your credit reports to prevent scammers from opening new accounts.

  • Scan all your devices for malware if you clicked any links from the scammers and change passwords for all accounts.

  • Monitor your accounts and credit reports closely for signs of suspicious activity indicating identity theft.

  • Report the scam to the FTC and your local law enforcement. Provide them with all details of your interaction with the scammers.

  • Contact the phone carrier being used for scam calls and have them investigate the spoofed numbers.

Protect Yourself with Identity Theft Protection

The Financial Hardship Loan Center scam reveals the dark side of the debt relief industry where scammers prey on vulnerable individuals. The best way to defend yourself is being vigilant to red flags and suspicious offers.

Additionally, enroll in comprehensive identity theft protection such as Aura to monitor your credit and finances for signs of fraud. If the scammers steal your data, services like Aura can quickly detect misuse and alert you before major damage occurs. Investing in identity protection reduces the risks from such predatory scams seeking your personal information.

With awareness about common debt relief scams and proactive precautions, you can avoid falling victim to exploitative schemes like the fake Financial Hardship Loan Center. Be wary of unbelievable offers and trust your instincts – if something seems too good to be true, it probably is. Make informed financial decisions and use legitimate assistance programs to restore your stability responsibly.

is the financial hardship loan center legit

Do not disclose personal information

If you receive a call you’re not expecting that displays an unknown caller ID, never give out any of your information — even your name — until you verify that any callers are who they say they are.

How to verify a caller or sender’s identity:

  • Ask questions, or ask to call them back later. Real companies — especially those that handle finances — will welcome any questions you may have. Scammers, on the other hand, will be circumspect in their solicitation and pressure you into taking swift action. If you’re unsure about someone’s identity, simply hang up and contact the company by calling its official number.
  • Do a reverse number search. A reverse number search can help you identify the person or company from whom you’ve received a call. Some phone number lookup services also flag numbers that may have been reported as being used by scammers.

What To Do If You Receive a Financial Hardship Department Scam Email or Call

Receiving emails that cite unfamiliar debts or debt relief loans from a “Financial Hardship Department” can be unnerving for most people. And if you’re not familiar with common scam tactics, you run the risk of falling victim to one of these schemes.

Here are five proactive steps that you can take if you’re receiving these type of emails or messages:

National Financial Hardship Loan Center Offers $36,000 Over The Phone – Is It Scam Or Legit?

FAQ

Is a financial hardship loan legit?

Is the Financial Hardship Program Legitimate? There is no official United States government agency or organization called the “Financial Hardship Department.” But with credit card debt reaching an all-time high of $930 billion, unrelenting scammers want you to believe that such an entity exists [*].

What happens if you claim financial hardship?

This is called a hardship notice. When you give a hardship notice (for the first time in any three-month period) the lender must stop further enforcement or legal action until it responds. This requirement does not apply if the creditor has a court judgment . Your creditor can ask you for more information.

How do I stop spam financial hardship calls?

The national Do Not Call list protects landline and wireless phone numbers. You can register your numbers on the national Do Not Call list at no cost by calling 1-888-382-1222 (voice) or 1-866-290-4236 (TTY). You must call from the phone number you wish to register.

Will the government call me about student loan forgiveness?

You might get a call from someone saying they’re affiliated with Federal Student Aid (FSA) or the Department of Education. (They’re not.) They’ll say they’re following up on your eligibility for a new loan forgiveness program, and might even know things about your loan, like the balance or your account number.

Is the financial hardship Department a scam?

Fortunately, the “Financial Hardship Department” is a well-documented scam, both in phone call and email form, which makes it a little easier to dodge. A month ago, a Reddit user posted an email with near-identical wording to the voicemails I’ve been getting, and seven other users chimed in that they’d received the same one.

Is there a ‘financial hardship Department’?

There is no official United States government agency or organization called the “Financial Hardship Department.” But with credit card debt reaching an all-time high of $930 billion, unrelenting scammers want you to believe that such an entity exists [ * ].

What if I received a financial hardship Department email or text message?

If you’ve only received the Financial Hardship Department email or text message but haven’t taken any action requested in it, such as calling the number, sharing personal information, etc., you are completely safe. Just make sure you block the email address or phone number.

Are there any government subsidies for hardship loans?

SCAM. There are currently no existing government subsidies for hardship loans. I got the same type call. I never applied for a loan if any kind. They’ll likely ask for a fee to process the fake loan, and/or your bank account information for a supposed immediate deposit. Just a guess, as I’m not returning the call.

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