Seven red flags to spot a scammer posing as a debt relief 'counsellor'

Scammers pose as debt relief counsellors, contacting people directly to have their debt resolved or reduced.

Scammers prey on panic and emotional vulnerability by calling to offer debt relief - this might be in the form of a lawyer or legal assistance - in exchange for personal information, including bank details.

Don't fall for it, warns Magwegwe.

If this happens to you, here are some red flags to look for:

Be wary of any pressure tactics, excessive upfront fees, or claims of 'immediate clearance'.
Be aware of a debt relief counsellor offering to help reduce payments 'QUICKLY' without paperwork.
Ask 'debt councillors' how they expect to reduce your payments. It might be difficult for scammers to answer questions they did not expect.
'Debt counsellors' offering to pay creditors on your behalf.
Double-check the language used. They might promise you relief that sounds 'too good to be true'. If the offer sounds like a get-out-of-debt-jail-free card, it's probably a scam.
You will get SMSs, phone calls, emails - they will be a nuisance. Don't give them a chance. Don't answer communications asking for personal information.
Don't appoint a lawyer to get you out of debt - this is not possible in South Africa, says Magwegwe.

If you have been fraudulently entered into debt counselling, the only number you should call is the National Credit Regulator's Toll Free number: 0860 627 627.