Beware of false promises at the end of the moratoriums on evictions


Better Business Bureau

The moratorium on evictions was struck down by the Supreme Court, but some state and local governments still issue their own eviction policies. Scammers are willing to take advantage of the confusion and stress that tenants can experience. With millions in the United States behind on their rent, the end of the moratorium is a perfect hook.

How the scam works

Beware of scammers who offer loans, sell credit repair services, or promote government programs. These inconveniences are a way to trick desperate people with money they don’t have.

For example, during the COVID-19 pandemic, BBB scam tracker
has seen many reports of bogus ‘pandemic relief’ grants or government programs that allegedly provide funding to people affected by the pandemic. Once you are “eligible for the grant,” the scammer will ask you to pay a handling or delivery fee to receive your funds. Of course, the grant does not exist, and if you pay up front, you just gave the crooks money.

Advance fee loans, debt relief and credit repair scams
work in a similar way. They promise a loan – or to repair your credit – for an upfront fee. No matter how much money you might need, don’t be tempted by “secured loans” or impossible services, like removing late payments or bankruptcy, from your credit report.

This recent BBB Scam Tracker report describes a situation that more people are likely to encounter as the eviction moratorium approaches. “I had been in dire financial straits for a few weeks now, so I was looking for loans and was turned down left and right,” the victim of the scam told BBB. The victim received a call from a loan provider, saying that her loan application had finally been accepted. There was only one problem: Before the business could release the money, the borrower had to increase their credit rating. Fortunately, this company had a way to help. “The way they would do it is they would send money to my account and then all I would have to do is send it back and that would increase my score.” Of course, the crooks never actually transferred the money. When the victim “returned” the funds, she transferred $ 1,000 into the hands of crooks and discovered her account.

Protect yourself from this scam:

  1. Check any government program before signing up. If an organization offers you a grant or relief funds, get to know them before you agree to anything. Take a look at their website and read the reviews. If you think you are dealing with an impostor, find the official contact details and call the company to make sure the offer is legitimate.
  2. Beware of unexpected calls, emails, or texts claiming to be from the government. In general, the government will not contact you using these methods unless you have given permission to do so.
  3. Do you think something looks suspicious? Contact the agency directly. If you doubt a government official is legitimate, hang up the phone or stop sending emails. Then report any suspicious calls or messages. Make sure the agency is real. Scammers often make up names of agencies and / or grants.
  4. Do not pay money for a “free” government grant or program. It’s not really free if there is a charge involved. A real government agency will not charge an early processing fee. Instead, find out if the grant is legitimate by checking out
  5. Upfront fees are a concern. Not all companies that promise to help you fix bad credit aren’t scams, but if you’re asked to pay up front, that’s a big red flag. In the United States and Canada, credit repair and debt relief companies can only collect their fees after performing the promised services.
  6. Avoid guarantees and unusual payment methods. Real lenders never guarantee a loan in advance. They will check your credit score and other documents before providing an interest rate and / or loan amount and will not ask you to pay any upfront fees. Fees are never paid through gift cards, CashApp, or a prepaid debit card. Unusual payment methods and payments to an individual are a big tip.

For more information:

Get more information by reading BBB Loan Advice and credit repair services. Learn more about scams by government impostors during COVID-19.

If you’ve spotted a scam (whether or not you’ve lost money), report it to Your report can help others avoid falling victim to scams. Find more information about scams and how to avoid them

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