Short answer: after a loan scam, you may hear from someone who says they can get your money back if you pay a fee first. Under the FTC’s Telemarketing Sales Rule, a seller or telemarketer cannot ask for or take a fee for recovering money you lost until seven business days after the money is delivered to you, with an exception for licensed attorneys. Reporting a scam to the FTC, the FBI’s Internet Crime Complaint Center or your local police costs nothing. Do not pay up front, and do not share account details with the caller. This is general information, not legal or financial advice.
What a recovery scam looks like
When the FTC widened its rule in 2015, it described the pitch this way: “Telemarketers pitching ‘recovery services’ contact victims of prior scams promising to recover the money they lost or the prize or merchandise they never received, in exchange for a fee paid in advance. Once the fee is paid, consumers rarely receive any benefit from the promised recovery services.” (Federal Register, 80 FR 77520, December 14, 2015, read October 30, 2026; a 2015 document that may be out of date.)
If you lost money to a fake lender who asked for a fee to “unlock” a loan, see advance-fee loan scams. A recovery offer that also asks for a fee first follows the same pattern.
What the Telemarketing Sales Rule says
The rule lists as an abusive practice (eCFR, 16 CFR 310.4(a)(3), text up to date as of October 28, 2026, read October 30, 2026):
“Requesting or receiving payment of any fee or consideration from a person for goods or services represented to recover or otherwise assist in the return of money or any other item of value paid for by, or promised to, that person in a previous transaction, until seven (7) business days after such money or other item is delivered to that person. This provision shall not apply to goods or services provided to a person by a licensed attorney.”
| Part of the rule | What it means for you |
|---|---|
| “previous transaction” | Since 2016 the ban covers money lost in any earlier transaction, not only one made by phone. The 2015 amendment expanded it from losses in prior telemarketing transactions to “recovery of losses in any previous transaction” (80 FR 77520, effective February 12, 2016). |
| “seven (7) business days after” | No fee may be asked for or taken until seven business days after the money is delivered to you. |
| “licensed attorney” | The ban does not apply to services from a licensed attorney. You can ask for the license and check it with the lawyer licensing office where you live. |
The rule applies to telemarketing, which it defines as a plan or campaign to sell goods or services “by use of one or more telephones and which involves more than one interstate telephone call” (16 CFR 310.2(ii), eCFR). Calls you make in response to an ad or a direct mail piece are exempt from parts of the rule, but those exemptions do not apply to offers covered by 310.4(a)(2) through (4), which include recovery services (16 CFR 310.6(b)(5)(i) and (b)(6)(i), eCFR). Whether the rule covers a given offer depends on the facts. You do not need the rule to protect yourself: reporting a scam is free.
Warning signs, from the rule and the CFPB
- They contacted you first and know you lost money. The FTC described recovery sellers who “contact victims of prior scams” (80 FR 77520).
- They want a fee before any money comes back, which the rule bars for telemarketed recovery offers (16 CFR 310.4(a)(3)).
- They say they are from a government agency or law enforcement and ask you to send money. The CFPB says real agencies and financial institutions “do not threaten you or ask you to send money to ‘protect it’”, and do not tell you to withdraw cash, buy gift cards or use cryptocurrency to send money (CFPB).
- They want payment by a cash-to-cash money transfer or cash reload, which telemarketers may not accept (16 CFR 310.4(a)(10)).
Where to get help for free
The CFPB says that if you think you or someone you know is a victim of a scam, contact the FBI, the FTC, your attorney general or your local police (CFPB, last reviewed August 28, 2026, read October 30, 2026):
- Report it to the FTC at ReportFraud.ftc.gov.
- Report it to the FBI’s Internet Crime Complaint Center at ic3.gov.
- Contact the attorney general where you live.
- Contact your local police or sheriff’s office through its nonemergency number or website.
The CFPB also says to reach agencies and financial institutions “using trusted websites and phone numbers”, not the contact details in a message you received. USAGov has a short tool that asks where the scam happened and what kind it was, then points you to the place to report it (USAGov).
If the scam involved a lender, a loan or a payment through your bank, you can also send a complaint to the CFPB (consumerfinance.gov/complaint); see how to file a loan complaint. If you gave the scammer your personal details, report it at IdentityTheft.gov and see a loan taken out in your name for the next steps. Contact your bank or card issuer about any payment you made, using the number on your card or statement.
What a recovery fee adds to the loss, only for the math
This example is only for the math, and all figures are example figures. You lost $1,500.00 to a fake lender. A caller offers to get it back for a fee of 20% paid first: $1,500.00 x 20% = $300.00. If the caller is a scammer too, you have now lost $1,500.00 + $300.00 = $1,800.00, and nothing comes back.
Related guides
Calls and texts that push you to act now are covered in fake loan texts and calls. If the person who lost money is an older relative, see elder financial exploitation. For offers to fix student loans for a fee, see student loan debt relief scams.
Questions to ask before you pay anyone
- How did you get my name, and how do you know I lost money?
- Are you a licensed attorney? Where can I check your license?
- Will you take any fee before my money is delivered to me?
- Why do you need my bank login or card number?
Checklist
- No fee before any money comes back.
- Report the scam for free: FTC, ic3.gov, attorney general, local police.
- Contact agencies and your bank only through numbers you look up yourself.
- A request for gift cards, cash or cryptocurrency is a warning sign the CFPB names.
- Shared personal details? IdentityTheft.gov.
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Sources
- eCFR: 16 CFR 310.4, Abusive telemarketing acts or practices (Telemarketing Sales Rule), current text up to date as of October 28, 2026
- Federal Register: Telemarketing Sales Rule, final rule, 80 FR 77520 (December 14, 2015), effective February 12, 2016
- eCFR: 16 CFR 310.2, Definitions (Telemarketing Sales Rule), current text up to date as of October 28, 2026
- eCFR: 16 CFR 310.6, Exemptions (Telemarketing Sales Rule), current text up to date as of October 28, 2026
- CFPB: Who do I contact for help with a scam or fraud? (last reviewed August 28, 2026)
- USAGov: Learn where to report a scam
- FTC: ReportFraud.ftc.gov
- FTC: IdentityTheft.gov
- CFPB: Submit a complaint
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.