Freedom Debt Relief Review Gets Mixed Reviews As The Nations Largest Debt Settlement Company

Debt is a common issue that many people face, and it can be overwhelming to manage on your own. Fortunately, there are many debt relief companies that can help you get out of debt, and one of them is Freedom Debt Relief. This article will provide a comprehensive review of Freedom Debt Relief, including its services, benefits, and drawbacks.

The company is a member of the American Fair Credit Council and a Platinum member of the International Association of Professional Debt Arbitrators.

Freedom Debt Relief has helped tens of thousands of people get relief from their debts. The company offers three main services: debt consolidation and debt settlement. These services are designed to help people manage their debts and get on track with their finances.

Freedom Debt Relief Pros and Cons

Here are some pros and cons of using Freedom Debt Relief:

Pros:

• Professional negotiation: FDR has a team of professionals who negotiate with creditors on your behalf to reduce the amount of debt you owe.
• Customized payment plan: The company creates a personalized payment plan that fits your budget and helps you pay off your debts over time.
• No upfront fees: FDR does not charge any upfront fees, and you only pay if they successfully settle your debts.
• BBB Accreditation: FDR is accredited by the Better Business Bureau and has an A+ rating.
• Experienced company: The company has been in business for over 18 years and has helped hundreds of thousands of customers.

Cons:

• Fees: While Freedom does not charge any upfront fees, they do charge a percentage of the total debt enrolled, which can be up to 25%.
• Credit score impact: Using them can have a negative impact on your credit score, as missed payments and settled debts can be reported to credit bureaus.
• Not a solution for all types of debt: It only works with unsecured debts, such as credit cards and personal loans, and does not work with secured debts, such as mortgages or car loans.
• No guarantee of settlement: There is no guarantee that FDR will be able to settle all of your debts, and you may still be responsible for paying off some of your debts on your own.
• Long-term impact: Using debt settlement services like FDR can have long-term consequences on your credit score and financial stability, and it may take several years to fully recover from the impact.

It is important to consider these pros and cons before deciding if Freedom Debt Relief is the right debt relief solution for you. It is also recommended to research other debt-relief options and consult with a financial advisor to determine the best path for your individual circumstances.

What is Freedom Debt Relief?

Freedom Debt Relief is a debt settlement company that helps consumers negotiate with their creditors to reduce the amount of debt they owe. The company was founded in 2003 and is headquartered in San Mateo, California. Freedom Debt Relief offers debt relief services to consumers who are struggling with unsecured debt, such as credit card debt, personal loans, and medical bills.

The company works by creating a personalized payment plan for its customers based on their individual financial situations. Customers make monthly payments into an account that is managed by Freedom Debt Relief. The company then negotiates with creditors to settle the debts for less than the full amount owed. Once a settlement is reached, the customer’s account is used to pay the settlement amount to the creditor.

While using Freedom Debt Relief can have a negative impact on a customer’s credit score, it can also help them become debt-free in a shorter amount of time than if they continued making minimum payments on their own. The company has helped hundreds of thousands of customers resolve their debts and has an A+ rating from the Better Business Bureau.

Freedom Debt recently settled a $25 million lawsuit with the CFPB and a $3.6 million lawsuit with the New York Attorney General.

How does Freedom Debt Relief work?

Freedom Debt Relief works by negotiating with creditors on behalf of its customers to settle their debts for less than the full amount owed. Here’s how the process typically works:

1. Free consultation: Customers can schedule a free consultation with Freedom to discuss their financial situation and determine if debt settlement is the right solution for them.
2. Customized payment plan: If the customer decides to enroll in FDR’s program, the company will create a customized payment plan that fits their budget. Customers make monthly payments into an account that is managed by Freedom Debt Relief.
3. Savings account: As the customer makes payments, the funds are deposited into a savings account. Once there is enough money in the account, they will begin negotiating with creditors to settle the debts for less than the full amount owed.
4. Negotiation: The company negotiates with creditors to reach a settlement agreement that is acceptable to both parties. Once a settlement is reached, the customer’s account is used to pay the settlement amount to the creditor.
5. Completion: Once all debts are settled, the customer’s account is closed and they are debt-free.

It’s important to note that debt settlement can have a negative impact on a customer’s credit score, as missed payments and settled debts can be reported to credit bureaus. However, over time, as the customer pays off their debts, their credit score may improve. It’s also important to remember that there is no guarantee that Freedom Debt Relief will be able to settle all of a customer’s debts, and they may still be responsible for paying off some of their debts on their own.

How does Freedom Debt Relief affect your credit?

Using Freedom Debt Relief can have a negative impact on your credit score. Here’s how it works:

• Missed payments: When you enroll in Freedom’s program, you stop making payments to your creditors and start making monthly payments to Freedom Debt Relief instead. This means that your creditors will report your payments as “late” or “missed” to the credit bureaus.
• Settlements: It negotiates with your creditors to settle your debts for less than the full amount owed. While this can help you save money in the long run, it also means that your accounts will be reported as “settled” or “paid for less than the full amount” to the credit bureaus.
• Credit score impact: Both missed payments and settled debts can have a negative impact on your credit score. The exact impact will depend on your individual credit history and the specifics of your situation.

It’s important to note that the impact on your credit score can vary depending on the credit reporting agency used by your creditors. Additionally, it may take several years to rebuild your credit after using debt settlement services like Freedom Debt Relief. If you’re considering debt settlement, it’s important to weigh the potential impact on your credit score against the benefits of becoming debt-free.

How much does Freedom Debt Relief cost?

The cost of using Freedom Debt Relief varies depending on your individual situation and the amount of debt you have. However, here are some general guidelines to give you an idea of what to expect:

Freedom charges a fee for its services. This fee is typically a percentage of the total debt enrolled in the program and ranges from 15% to 25%. This fee is only charged once a debt is settled, and it’s important to note that you will never be charged a fee for a debt that is not settled.

FDR aims to negotiate settlements that will save you money compared to what you would have paid if you continued making minimum payments on your own. The exact amount of savings will depend on your individual situation and the terms of the settlement agreements.

As part of the program, you will make monthly payments into a savings account that is managed by Freedom Debt Relief. These payments are typically lower than the minimum payments you would have been making on your own, but they may extend over a longer period of time.

It’s important to note that Freedom Debt Relief offers a free consultation to discuss your individual situation and provide a personalized quote for its services. It’s always a good idea to shop around and compare multiple debt relief companies before making a decision. Additionally, it’s important to read and understand all of the terms and fees associated with using Freedom Debt Relief before enrolling in the program.

How to contact Freedom Debt Relief customer service

The customer service number is 800-653-1948. You can also visit their website at freedomdebtrelief.com and click on the “Contact Us” link at the bottom of the page. When you call customer service, be sure to have your account information handy so that they can help you as quickly as possible.

Which companies does Freedom Debt Relief settle debts with?

Freedom Debt Relief settles debts with the following companies:

• American Express
• Bank of America
• Capital One
• Citibank
• Discover Card
• GE Money Bank (formerly MetLife)

These are some of the largest credit card issuers in the United States. If you have debt with one of these companies, Freedom Debt Relief may be able to help you settle your debt.

Freedom Debt Relief BBB reviews

We take a look at Freedom Debt Relief BBB reviews to see what customers are saying about this debt relief company.

Overall, the reviews are positive, with many people stating that Freedom Debt Relief helped them get out of debt. There are some complaints here and there.

BRENDA M 02/25/2023

Robert L 02/23/2023

Antee G 02/22/2023

FAQs:

Q: How effective is Freedom Debt Relief?

A: The effectiveness of Freedom Debt Relief varies depending on individual circumstances. However, the company reports that its customers typically settle their debts for 50% or less than what they owe.

Q: What are the fees associated with Freedom Debt Relief?

A: Freedom Debt Relief charges fees based on the amount of debt enrolled and the state you live in. The fees can range from 15-25% of the total debt enrolled.

Q: Does Freedom Debt Relief work with all types of debt?

A: Freedom Debt Relief works with most unsecured debts, such as credit cards, personal loans, and medical bills. However, it does not work with secured debts, such as mortgages or car loans.

Q: How does Freedom Debt Relief compare to other debt-relief options?

A: Freedom Debt is one of several debt relief options available to consumers. Other options include credit counseling, debt consolidation loans, and bankruptcy. It is important to research all options and choose the one that is best for your specific situation

Freedom Debt Relief Lawsuits

Freedom Debt Relief Pays $25 Million To Settle Lawsuit with Consumer Financial Protection Bureau

On July 9, 2019, The Consumer Financial Protection Bureau (Bureau) today announced that they have settled its lawsuit against Freedom Debt Relief LLC, the nation’s largest debt-settlement services provider.

The company agreed to pay $20 million in restitution and a $5 million civil money penalty for unfair business practices towards consumers with respect to improper marketing tactics such as misleading Communications like robocalls or texts without consent; high-pressure sales tactics which include making offers sound more lucrative than they actually are by inflating savings figures on settlements agreements when there’s no chance at all one will be able to find any relief through this method alone.

The Bureau’s lawsuit alleged that Freedom Debt Relief violated the Telemarketing Sales Rule by charging advance fees and failing to inform consumers of their rights, as well as a variety of other regulations. The suit also charges them with misleading customers about how much money they would be able to save on interest rates when negotiating settlements directly from all your creditors instead of just one or two at a time–and even going so far as requiring payment upfront before settling any debts!

Freedom Debt Relief Pays $3.6 Million to Settle Lawsuit with New York State Attorney General

The New York Attorney General has secured a win that will return nearly $3.6 million to thousands of consumers who were misled about savings they could achieve through freedom Debt Relief, and it occurs just weeks after this same organization was sued by our office for making false promises in violation on an earlier agreement made with them back when they were operating under different ownership (in 2011).

The AG’s Office filed papers today saying how Freedom Debt Relief committed “extensive fraud” during its operation – misleading people into thinking there was significant progress being made towards wiping out their credit card debts while giving little or no information regarding what actually happened when clients enrolled themselves as members.

Here’s what you need to know about the Freedom Debt Relief lawsuit:

What is the Freedom Debt Relief lawsuit about?

The lawsuit was filed in May 2019, alleging that the company had engaged in false advertising and deceptive practices. The suit alleges that the company had promised to help consumers reduce their debt by negotiating with creditors, but instead used high-pressure sales tactics to enroll them in its program and then failed to deliver on its promises.

Who is suing Freedom Debt Relief?

The lawsuit was filed by the Federal Trade Commission (FTC), which is the government agency responsible for protecting consumers from unfair or deceptive practices.

How much money is Freedom Debt Relief being sued for?

The FTC is seeking to recover millions of dollars from Freedom Debt Relief. The exact amount has not been disclosed, but it is believed to be in the tens of millions of dollars.

What does this mean for consumers?

If you’re considering using Freedom Debt Relief to help you get out of debt, you may want to think twice. Check out White Mountain Partners. The company is facing a lawsuit that could force it to pay back millions of dollars to customers who say they were misled. You may also want to consider other options for getting out of debt, such as credit counseling or debt consolidation.

There are several other companies that offer similar services as Freedom Debt Relief, so do your research before choosing a provider. And remember, you should never pay for debt relief services upfront – these programs should be free if they are provided by a legitimate organization.

How to cancel Freedom Debt Relief?

If you have enrolled in Freedom Debt Relief and want to cancel your participation, there are a few steps you can take:

1. Contact Freedom Debt Relief: Call their customer service department to inform them of your decision to cancel your enrollment. Be prepared to provide your account information.
2. Review your contract: Review your contract with Freedom Debt Relief to understand the terms and conditions related to cancellation. Make sure to understand any potential fees or penalties that may apply.
3. Follow the cancellation procedure: Follow the cancellation procedure outlined in your contract, which may include sending a written request to cancel.
4. Monitor your accounts: Keep a close eye on your accounts to ensure that Freedom Debt Relief stops making payments on your behalf. You should also monitor your credit report to ensure that your debts are being reported accurately.
5. Consider other options: If you are canceling because you are not satisfied with Freedom Debt Relief’s services, consider other options such as debt consolidation or credit counseling.

It’s important to remember that canceling your participation in Freedom Debt Relief does not eliminate your debt. You will still be responsible for making payments on your debts.

Is Freedom Debt Relief legit?

There are a lot of mixed reviews about Freedom Debt Relief. Some people say that they are great at helping you get out of debt, while others say that they are a scam. So, what is the truth?

Well, to be honest, it really depends on your specific situation. Freedom Debt Relief may be a good company for some people and a bad company for others. It all just depends on your unique financial situation.

When choosing Freedom Debt Relief to help you get out of debt, make sure to do your research first and talk to a few different creditors. That way, you can be sure that Freedom Debt Relief is the right choice for you.