What is the National Financial Hardship Loan Center?

Financial hardship can strike anyone unexpectedly. Job loss, medical bills, or other emergencies can leave you struggling to pay your bills and make ends meet. In times of need, government and nonprofit programs exist to help. Unfortunately, scammers often take advantage of vulnerable people seeking financial assistance. One such scam claims to offer loans from the fictitious “National Financial Hardship Loan Center.”

The Scam

Scam callers may claim you qualify for a loan or grant from the “Financial Hardship Department” or “National Financial Hardship Loan Center.” They ask for personal information like your Social Security number and bank account details to “verify your eligibility.” However there is no official government program with these names. The scammers will take your information and money without providing any real assistance.

The Federal Trade Commission (FTC) has received many complaints about these scams. People report getting calls offering loans ranging from $3,000 to $36,000 from the fake “National Financial Hardship Loan Center.” The scammers pressures people to pay large upfront fees before receiving the “loan.” Of course the loan never materializes.

No Government Loans for Individuals

When facing financial struggles, your first instinct may be to turn to the government for help. However, the government does not offer direct loans or grants to individuals in financial hardship situations. Government assistance comes in the form of targeted programs that provide:

• Food assistance (SNAP, WIC)
• Health insurance subsidies (Obamacare)
• Unemployment benefits
• Temporary financial assistance for families (TANF)
• Housing assistance (Section 8, emergency shelters)
• Utility bill assistance (LIHEAP)

If you qualify for these programs, you can get money, food, healthcare, or housing help. But the government will never call you out of the blue and offer you a direct cash loan or grant. That’s an immediate red flag for a scam.

How to Get Real Government Aid

While no national financial hardship loans exist, federal, state, and local programs can help if money is tight. Here are some legitimate sources of government assistance:

• SNAP (food stamps) – Provides monthly benefits to low-income households to purchase groceries. Apply through your state human services agency.

• WIC – Provides food assistance, nutrition education, and breastfeeding support specifically for low-income pregnant and postpartum women and families with children under 5. Offered in every state.

• TANF – Gives cash assistance and other support to very low-income families with children. Each state runs its own TANF program.

• Section 8 – Subsidizes rental housing costs for low-income tenants. Apply through your local public housing authority.

• LIHEAP – Helps pay heating and cooling bills. Apply through your state human services department.

• Obamacare – Offers income-based discounts on health insurance purchased through Healthcare.gov.

• Unemployment – Gives temporary weekly benefits to those who lose jobs through no fault of their own. Apply in the state where you worked.

• Local nonprofits – Organizations like the Salvation Army and Catholic Charities offer emergency financial help for bills, food, and housing.

Searching “[your state/city] assistance programs” is the best way to find help near you. Applying for these government programs is always free and enrollment can often be done online or by phone.

Beware of “Advance Fee” Scams

The fake “National Financial Hardship Loan Center” is an example of an advance fee scam. In advance fee scams, scammers guarantee loans or other assistance in exchange for money up front. They will promise loans, grants, debt relief, mortgage assistance, or credit counseling help for an upfront payment. But after you pay, they take the money and disappear.

Other common advance fee scams include:

• Fake grant offers
• Mortgage modification scams
• Debt settlement scams
• Credit repair scams
• Payday loan debt relief scams

Remember, real lenders never guarantee approval for a fee. And government assistance programs do not require payment to enroll.

Protect Yourself from Scams

Here are some tips to avoid financial hardship scams:

• Never pay upfront fees – Real lenders and government programs won’t ask for large fees before services. Walk away if fees are required for promised grants, loans, or benefits.

• Don’t give personal info to unsolicited callers – Legitimate lenders won’t call out of the blue demanding your SSN and bank details. Refuse to provide this info.

• Research real assistance programs – Find reputable local nonprofits and check eligibility for government benefits like SNAP and LIHEAP.

• Report scams – If you receive a call from the fake “National Financial Hardship Loan Center,” report it to the FTC.

• Check your credit – Advance fee and other scams often lead to identity theft. Monitor your credit reports to catch any fraud.

Facing financial struggles can be scary. Unfortunately, scammers prey on desperation. Safeguard your information and explore legitimate assistance options. If an offer sounds too good to be true, it always is. No real government program will call promising “free money” if you pay a fee first. Avoid scams and get help from reputable local resources. With caution and research, you can find support to get through challenging times.