With inflation and rising interest rates, many are turning to debt-relief businesses to help them out.

The Better Business Bureau (BBB) recently did a study and found a large amount of people across North America are falling victim to predatory companies.

They say so far this year, they have received 11,000 complaints from people who say some credit repair companies have lost them thousands of dollars and left them in a worse place than where they were before.

Wes Lafortune from the BBB is also advising people to be aware of fraudsters.

“There’s also scammers involved in this space and the scammers might offer or seem to be offering legitimate services but they are not,” he said. “What they will be asking for is fees up front — they want your identity, your cash. And once you send them some money, you’ll likely never hear from them again.”

He also has some tips about how to identify a fake company.

“There are legitimate companies who will charge a fee — there’s many, many scammers out there, so the starting point really — the red flag is, if somebody wants a fee up front to help you deal with your debt, than that is a red flag,” said Lafortune.

Lafortune has also offered up some tips for those who might be thinking about debt relief or credit repair.

He says to avoid giving away bank information until you are 100 per cent certain about the company; don’t pay or provide information until service is rendered and always check your bank statement so you don’t get surprised by recurring charges.

Lafortune explains that being a scammer relies on being taking advantage of vulnerabilities.

“What scammers do is they’re extremely good opportunists — the incredible debt that people are holding onto right now, coupled with the pressure people feeling to pay their debt, legitimately pay their bills, creates a situation where scammers can take an opportunity,” he said. “It’s being really methodical and really thinking about this — if you need help, get the right help.”