Freedom Debt Relief differs from debt consolidation companies by working directly with creditors to settle client debts. They specialize in simple unsecured personal loans, business debts and private student loans based on case-by-case situations.
But it won’t help with debt from mortgages or cars. Additionally, this program could have an immediate negative impact on your credit score.
The process
Freedom Debt Relief’s debt settlement program assists consumers with large amounts of unsecured debt. The process starts with consulting an FDR representative and reviewing your debts; after which, you have the choice whether or not to enroll. Once in, payments will stop going directly to creditors but instead deposited into an account designated by Freedom Debt Relief for negotiation purposes – taking two to four years on average while potentially harming your credit rating due to missed payments and late fees accrued over that time period.
FDR representatives will negotiate with your creditors to settle your debts for less than they are due, beginning once you have saved enough in a dedicated account. They can remit payments from this account directly to creditors once a settlement offer has been reached. FDR charges its clients approximately 24 percent of their enrolled debt amount as fees for services; though their fees may seem high, this company provides thorough and effective debt settlement solutions for consumers with large amounts of unsecured debt; their customer support is outstanding too, keeping you updated as to the status of your account at all times.
Clients’ satisfaction
Freedom Debt Relief’s high satisfaction ratings attest to their expertise in negotiating debt settlements that benefit clients. Freedom Debt Relief does not charge upfront fees but takes a percentage of any total amount settled debt; additionally, they provide money-back guarantees as well as having excellent ratings from Trustpilot and Better Business Bureau.
Freedom Debt Relief’s debt relief programs are intended to assist clients in becoming debt free in under five years. However, it should be noted that debt reduction will have an adverse impact on a client’s credit score due to debt negotiation programs requiring that clients cease payments during settlement negotiations with creditors; creditors may even file lawsuits against clients; in such instances Freedom Debt Relief partners with attorneys from across its network in order to provide legal representation.
Freedom Debt Relief not only offers debt settlement services but also credit counseling and financial management tools and resources. Their website includes videos, FAQs, glossaries and blogs for visitors; live phone support seven days a week as well as knowledgeable customer service team that can guide individuals toward finding solutions specific to their circumstances.
Freedom Debt Relief stands out from its peers by not charging upfront fees; rather, only charging when successfully settling your debt. A member of both American Fair Credit Council (AFCC) and International Association of Professional Debt Arbitrators, they boast an A+ rating with Better Business Bureau as well as 79% excellency ratings on Trustpilot.
However, Freedom Debt Relief has an unfortunate track record when it comes to litigation and regulatory matters. In 2019, the Consumer Financial Protection Bureau sued Freedom Debt Relief for charging consumers without actually settling their debt – eventually settling for $20 million in settlement. Regardless of this history of controversy and past problems with customers, Freedom Debt Relief still boasts a very successful track record and solid customer relations, having settled over $15 billion worth of customer debt within three months of enrolling with them!
Fees
Freedom Debt Relief can provide an important service if you’re overwhelmed by debt, as they negotiate with creditors to settle debt for less than what’s owed to them. But watch out for any hidden fees which could drain away savings or have an adverse impact on your credit rating.
As is typical with debt settlement companies, Freedom Debt Relief charges a fee when any specific debt is negotiated and settled upon, followed by its first settlement payment being made. Their fees depend on your state of residence and initial debt amount as well as tax liability associated with any lowered balances on enrolled accounts.
Freedom Debt Relief has earned high customer satisfaction ratings as an American Fair Credit Council and Platinum member of the International Association of Professional Debt Arbitrators member, and can assist with unsecured debts only; they do not negotiate loans, mortgages, or settle student loan debt.
The Consumer Financial Protection Bureau has filed a lawsuit against Freedom Debt Relief and co-CEO Andrew Housser of Freedom Debt Relief alleging deceptive practices such as misrepresenting fees, forcing customers to negotiate debt settlements on their own and failing to disclose its services fully. As part of its complaint against the defendants, CFPB seeks compensation for affected consumers as well as civil penalties against Freedom Debt Relief to stop its unlawful practices.
Debt settlement companies may help those with substantial unsecured debt, but the costs can often outweigh their advantages. Debt settlement companies typically charge high fees; sometimes their savings don’t even cover them completely; additionally, stopping paying can have serious repercussions for your credit rating.
Though it takes more effort and time than contacting creditors directly directly, negotiating your debt directly may save thousands in interest payments and fees. Before taking this route, however, be aware of your finances and credit status before considering it – consulting a certified financial counselor might help guide your decision better.
Reputation
If you’re struggling with debt, the best approach is to enlist professional advice and assistance from a dependable company like Freedom Debt Relief. Established by two Stanford Business School alumni, Freedom Debt Relief has built up a stellar reputation of transparency and integrity, earning 79% excellence ratings on TrustPilot from customers, helping over 500,000 consumers across America with debt relief alone! In addition to debt relief services, the firm also provides credit repair and provides scholarships for U.S. students.
Freedom stands apart from its competition by not charging upfront fees and only taking its cut from negotiated debt settlement agreements when finalized. Accredited by the Better Business Bureau with an A+ rating, many reviewers praise Freedom’s customer service and ability to explain the debt settlement process clearly.
But some individuals have complained of Freedom’s support specialists’ ineffective communication and slow response times; yet most debtors who were once drowning say Freedom has helped save them from paying a significant portion of what they owed. If you want a reliable debt settlement company, check for reviews on trustworthy websites rather than ones offering paid ads; also, look for any hidden information such as extra details that weren’t disclosed in its article.