Freedom allegedly deceives customers about its fees Freedom did not independently verify hardship claims or require consumers to provide supporting documentation for hardship claims as part of its underwriting efforts.” 3. Freedom claims that they make customers aware of this, but in some cases, Freedom doesn’t even communicate with creditors - let alone negotiate.Īccording to the CFPB complaint, Freedom also has approved customers’ enrollment in its program “even if they were not delinquent on any debts at the time of enrollment. Freedom allegedly deceives customers about its services - even when they don’t need themįreedom tells its customers that it has 200 or so experienced negotiators dealing directly with creditors however, upon enrollment and depositing of funds in Freedom’s accounts, customers may only get guidance on settling their debt on their own. Freedom also allegedly instructs customers to say their settlement funds came from family or friends, or the sale of property - not through Freedom’s loan program. When customers do negotiate debt themselves, Freedom allegedly tells them expressly to mislead their creditors when asked if they were enrolled in a debt-settlement program. In turn, that means consumers may be paying Freedom to end up negotiating their debt themselves. It doesn’t actually have much negotiating power, the CFPB claims, as several major creditors have non-negotiation policies with debt-settlement companies, including Chase, Synchrony Bank, Discover, American Express, and Macy’s. The problem with debt-settlement offers is Freedom allegedly does not let consumers know about the many obstacles to negotiating with creditors. After the debt is settled, Freedom collects an 18% to 25% fee off the amount of debt the consumer owed when he or she enrolled in its program. Those who enroll in Freedom’s program must deposit money into dedicated accounts that Freedom could use to make settlement offers to creditors that are less than what the customer owes. It finds customers via telemarketing efforts, learning more about their debt and who their creditors are. Freedom allegedly misleads consumers about negotiating debtįreedom tells those who’ve enrolled in its debt-settlement program that it’s successfully negotiated and settled $7 billion in debt for 450,000 consumers. Here are five things you need to know about the Freedom Debt Relief lawsuit. The company also allegedly fails to inform customers about their rights to the funds they’ve deposited with Freedom. The CFPB alleges that Freedom has charged consumers without settling their debts, misleads them about fees and services, and makes their customers negotiate their own settlements. It’s also one of the most deceiving companies out there, at least according to the Consumer Financial Protection Bureau (CFPB), which filed suit against Freedom Debt Relief and co-CEO Andrew Housser on November 8, 2017.
The San Mateo, California company is part of Freedom Financial Network and the largest debt-settlement services provider in the United States.
FREEDOM DEBT SOLUTIONS REVIEWS FULL
Once again you end up paying your full debt back due to their exorbitant fees which appear to be almost 100% of what they save you.If you live in California and you’ve had a little trouble paying your bills, you’ve probably heard of Freedom Debt Relief. So, overall, I'm saving $24? This company is such a SCAM!!. They settled the account for $564 down from $1126 for a savings of $562, but then they charge $538 in fees. Be ware!! UPDATE! Received a message saying that FDR is ready to settle another account. I understand that it is a business and they have to make money, but their promises are misleading and you end up paying more than you originally owed to your creditors. I contacted the company by phone and the representative was very rude and cut me off mid-sentence and stated that "my program will be reviewed once the program has completed (4 years) or I have voluntarily ended the program and at that time it will be determined if I saved money".
In the end they saved me nothing on the debt and I ended up paying an extra $447 due to their fees.
FREEDOM DEBT SOLUTIONS REVIEWS PLUS
How is it possible that I am paying almost the full debt plus a $677 fee. Their program saved me $230, but then they charged me $677 to settle the debt. The percentages of the debt settlement amounts are no where near what I was quoted at the beginning.
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