The debt from a course or mentorship program that didn't deliver is legally and practically different from most consumer debt — because the original transaction may be disputable. That distinction matters enormously for what you should do first. Work through these steps in order.
Step 1: File a chargeback (credit card or BNPL) — do this first
If you paid with a credit card, a chargeback under "services not as described" or "services not rendered" is your strongest tool. Your card issuer disputes the charge directly with the merchant's bank, and you receive a provisional credit while the investigation runs. To make the dispute stick, document specifically how the course failed to deliver what was advertised — screenshot the sales page income claims, compare them to what the curriculum actually covered, and note any refund requests that went unanswered.
Time limits matter. Visa and Mastercard chargebacks are generally available within 120 days of the transaction date; American Express up to 120 days; Discover up to 90 days. If you're near the edge, call your issuer today — the clock doesn't pause while you research. BNPL providers (Affirm, Afterpay, Klarna) have their own dispute processes accessible in-app; open that dispute before your next installment is due.
Even if the course had a "no refunds" policy in its terms of service, card networks can still find in your favor when the advertised product was materially misrepresented. A blanket no-refund clause does not override your chargeback rights.
Step 2: File complaints with the FTC, CFPB, and your state AG — also free
These won't immediately recover your money, but they serve two real purposes: they create an official record that strengthens any future action, and they contribute to the pattern data regulators use to bring enforcement cases against repeat operators.
- FTC: ReportFraud.ftc.gov — report income claims that were exaggerated or unrepresentative, broken refund promises, or high-pressure sales tactics. Include screenshots wherever possible.
- CFPB: CFPB.gov/complaint — file if the financing vehicle (card, loan, BNPL) was involved in the misrepresentation or if the lender's dispute process failed you.
- State Attorney General: Find your state AG's consumer protection complaint portal — most states allow online filing. State AGs sometimes move faster than federal agencies on local operators and can mediate refunds directly with the business.
Step 3: Escalate to the selling platform
If the course was hosted on Udemy, Skillshare, Teachable, or a similar marketplace, the platform has its own refund and dispute policies. Udemy offers refunds within 30 days of purchase with no questions asked, and will review complaints outside that window in cases of misrepresentation. Teachable and Kajabi refund decisions are made by the individual creator, but the platform's trust-and-safety team can intervene in clear-cut fraud cases. Document your complaint in writing — email, not chat — so you have a paper trail if you later need to escalate.
If the "course" was sold as a private mastermind, group coaching program, or income-share mentorship outside any marketplace, the FTC and state AG routes become more important because there is no platform intermediary to appeal to.
Step 4: If you signed an income-share agreement or installment plan directly with the seller
Income-share agreements (ISAs) used by some course sellers are a relatively new financial product, and their legal enforceability varies significantly by state. Before making another payment on an ISA you believe was linked to misrepresented income projections, request a free consultation with a legal-aid attorney or look up your state's consumer protection rules via the National Consumer Law Center (NCLC.org). Some ISA provisions — particularly income-based repayment triggers tied to unrealistic income thresholds — have been challenged successfully. This is worth understanding before you assume the full balance is unavoidable.
Step 5: Managing the remaining unsecured balance
Once the dispute and complaint routes are exhausted, any balance left on a credit card, personal loan, or paid-off BNPL account is ordinary unsecured debt. Your options at this stage:
- Aggressive payoff: Channel any available cash flow toward the highest-interest balance first. If the APR is above 20%, this is usually the fastest path to $0 for smaller balances.
- Balance transfer or personal-loan refi: If your credit score is still solid, a 0% intro APR balance transfer card or a lower-rate personal loan can cut interest costs substantially while you pay down the principal.
- Nonprofit debt management plan (DMP): If the balance is under $7,500 or you want a structured plan without affecting credit as severely, a nonprofit credit counseling agency (look for NFCC members at NFCC.org) can negotiate lower interest rates and consolidate payments. DMPs do not reduce principal.
- Debt settlement: For larger unsecured balances — generally $7,500 or more across cards and personal loans — a debt settlement program negotiates a lump-sum payoff for less than the balance owed. Settlement is not guaranteed, will hurt your credit score, and any forgiven amount may be taxable as ordinary income (the creditor issues a Form 1099-C). It is a meaningful trade-off, not a clean solution — but for some people it is the most realistic exit from a balance that has become unmanageable.
Whatever path you take, avoid the category of "course debt recovery services" or "crypto recovery specialists" that promise to claw back money from scam courses for an upfront fee. These are almost universally secondary scams. Legitimate options — chargebacks, FTC/CFPB complaints, nonprofit credit counseling, and regulated debt settlement companies — don't charge upfront fees to begin.