Setup Fee: 15%
Monthly Fee: None
Settlement Fee: None
TASC Members: Yes
BBB Complaints: 139
In Business Since: December 2002
Freedom Debt Relief, which is part of the Freedom Financial Network, charges a standard 15% of your total debt amount. This 15% is spread out over the first 19 months of your program. Their programs range in length from 24 to 36 months. Freedom Debt Relief is one of the larger debt settlement companies in the nation. I was told they have over 50,000 active clients. This can be good or bad depending on the level of personal service you like to receive.
Freedom has received 139 Better Business Bureau complaints over the past 36 months. Of these 139 complaints, only 84 have been closed. This means 55 complaints are still outstanding and have received no resolution. FDR’s website shows them as being an accredited member of TASC, yet when I visit the TASC site and look at their business listing, they are only being shown as a regular member. You should ask about this discrepancy when shopping for their services.
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From: The Daily Journal, San Mateo, CA.
Freedom Debt company sued for misleading customers
By Michelle Durand
Many customers of Freedom Debt Relief actually incurred greater debt through late fees and collection lawsuits because the San Mateo-based financial services company purposely misled consumers to get their business, according to San Mateo County prosecutors.
The Consumer and Environmental Unit of the District Attorney’s Office joined with the California Department of Corporation to sue Freedom Debt Relief, LLC, Freedom Financial network, LLC and company owners Andrew Housser and Brad Stroh. The lawsuit filed Oct. 30 in San Mateo County Superior Court claims the defendants engaged in unlawful business practices, including making false or misleading statements to consumers via the Internet and telephone to induce them to buy debt reduction services. The suit also claims the company violated the state financial code by operating without a business license from the Department of Corporation.
The business, located at 1875 S. Grant St. in San Mateo, advertised having approximately $1 billion in debt under management throughout the United States. The company advertised being able to negotiate a 40 percent to 60 percent reduction in debt to unsecured creditors but, according to prosecutors, instead made some customers’ situations worse.
“Instead of their debts being settled or reduced, many of the defendants’ customers suffered increased debt because of late fees imposed by creditors, referral to collection agencies or collection lawsuits. Some customers ended up in bankruptcy,” according to the suit.
Prosecutors want an injunction ordering the company to follow the law, pay restitution and pay civil penalties between $2,500 and $10,000 for each violation.
The company’s goal, according to its Web site, is to eliminate rather than simply lower debt. The plan for those who qualify, the site explains, is a “debt reduction program” which involves “affordable monthly savings obligations” to get consumers out of debt “in as little as 2 to 3 years.”
The founders have been profiled by numerous news organizations and were finalists for the 2006 Ernst & Young Northern California Entrepreneur of the Year award.
Consumers who believe they have been victimized should file a complaint with the District Attorney’s Consumer and Environmental Unit at (650) 363-4651.
Michelle Durand can be reached by e-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 102.
Im still with Freedom, but it seems like there not doing to much to help my wife and I. There taking money from my banking account and yet my wife had to take out from her 401-plan to pay off one account and it looks like I may need to take money out of a hardship from my work to pay another account. Im not sure what there doing with the money there taking from my bank. and they keep telling me that they are having a hard time negotiating each of my accounts and there only from $1000.00 to $4000.00 and I only have 5 accounts and 2 I had to pay the full amount. My wife was going to retire and now she needs to keep working. Freedom is not what they say they are and they do not do what they say there going to do. Please check other companys out. P.S. I hope this gets on there review list, maybe they only show the good reviews.
Freedom debt relief is a joke they cannot have your debt reduced none of these settlement program works when they finished collecting their hefty fees they do nothing for you. so the 40%-60% they say they can do just do not work. but the amaizing thing is the monthly settlement they show makes me wonder is this for real or is it a gimmick to make people join the program. these people should not allow to do business
Effective the evening of March 9, 2010 not one phone number, email or fax number is being answered by Freedom Debt Relief. In addition their “partner in crime: Global Client Solutions does not appear to have a working “phone number”. You may not be able to retrieve anything, but I suggest you might consider stopping any further withdrawals from your checking account.
I am also with FDR and received my first 1099 from BOA for a credit card debt that was canceled. Get this, my original balance that I submitted was $3,651. The amount canceled by BOA was $3,153. FDR likes to take credit for reducing to a settlement amount of $2,211. So, in actuality they only saved me $1400?! Seriously!?!? Where they heck do they figure this is 41% savings?! Ugh!! I was able to call their 800 Customer Service line tonight and was given the hardest time when I tried to opt out of the program. I signed up in January 2007. They’ve only settled 2 of my 5 credit cards and it’s been 3 full years! She said she could only defer one months payment and then I would have to call back next month to cancel after I’ve “thought about it.” What the heck else is there to think about?! I want out!!!! DO NOT DEAL WITH THIS COMPANY! They are NOT looking out for you.