Freedom Debt Relief Review


Rating: 9.7 / 10 (Excellent)
6 Customer Comments & Reviews - see all comments
Disclosure: We receive advertising revenue from this partner. 
Learn more.
Founded in 2002, Freedom Debt Relief (FDR) is the largest debt negotiator in the nation. FDR is a member of the Freedom Financial Network and is engaged in helping people find debt relief through its debt resolution services. The company negotiates with their client’s creditors to resolve outstanding debt. FDR and its partners employ debt resolution and debt settlement strategies. FDR currently has offices located in San Mateo, CA and Phoenix, AZ. Freedom Debt Relief employs over 1,600 debt settlement professionals, and has served more than 450,000 clients across the United States.
ConsumersAdvocate.org Notice: Freedom Debt Relief was recently the target of a Consumer Financial Protection Bureau lawsuit regarding FDR’s disclosure of certain terms. Please scroll down to the bottom of the review for more information.

How is Freedom Debt Relief rated?

Breakdown

10/10
Reputation
10/10
Qualification
10/10
Pricing & Fees
9/10
Services

Overall Rating: 9.7 / 10 (Excellent)

With over $8 billion in debt resolved since 2002, FDR is an excellent choice for anyone struggling with over $15,000 in debt. As a founding members of the American Fair Credit Council, they are one of the more reputable services in the industry today. In accordance with the FTC, the company charges no up front fees, making risk minimal. The company is also very up front about the nature of debt settlement as opposed to other debt relief options. Debt settlement is essentially an option to bankruptcy. In it you stop paying your creditors and employ Freedom to negotiate on your behalf for a lesser amount than you owe. Because this will negatively impact your credit, debt settlement is a good idea for those with poor credit, or anyone willing to take the temporary hit to get out of debt fast.

Freedom Debt Relief Services

Services - 9 / 10

Freedom Debt Relief provides debt settlement services, which can also go by the name of debt resolution and debt negotiation. The company is particularly successful as they have been negotiating debt for over a decade and has considerable influence with key creditors. This is especially important with a debt settlement service as the speed at which they are able to get the creditor to agree to a deal directly affects how long your credit will be affected. Also, longstanding relationships with creditors is critical as one of the main dangers of debt settlement is when a particular creditor is unwilling to negotiate. Freedom's debt settlement power is unmistakable as the company settles an average of over 42,000 accounts per month. Freedom is also transparent as to the risks of debt settlement as opposed to debt consolidation and credit counseling.
Services Offered
Debt Settlement
Professional Consultation
Estimated Debt Reduction
15-35%
Program Length
24-48 months
Additional Benefits
Online Management

Qualification

Qualification - 10 / 10

Freedom offers a no obligation consultation with a debt consultant to see if a given customer qualifies. Customers must be financially able to make monthly payments into a dedicated FDIC-insured account. This is the money the company will use to negotiate with creditors on your behalf. The monthly payment should be less than you are spending already in debt payment. Typical of debt settlement programs, Freedom can help you with virtually any kind of unsecured debt. This includes credit cards, medical bills, department store credit cards, personal loans, certain accounts in collection, etc. The company, however, cannot handle debt that involves collateral, like mortgages and auto loans. What's more, whereas some debt settlement services will take on student loans, Freedom will not.
Minimum Debt Amount
$7,500
Debt Solutions For
Medical Bills
Unsecured Loans
Credit Cards
Excluded Debts: No collateral-based loans (auto loans and mortgages) and no federal student loans.

Pricing: How much does Freedom Debt Relief cost?

Pricing & Fees - 10 / 10

As with all legitimate debt settlement services, Freedom Debt relief charges no up front fees of any kind. This is mandated by the FTC. What's more, clients of Freedom do not pay any fees whatsoever unless a debt is successfully closed. So the fee is built into the monthly payment, but is only taken by Freedom if they are completely successful. (Fees can vary by state.) Freedom's debt resolution fee is 15-25% of the settled debt. This is standard for debt settlement services.
Up-front Fees?
No

Sample Program

Estimated Savings
$69,550
Estimated Program Length
46 months
Estimated Monthly Payment
$387
* The estimates above were obtained directly from the Freedom Debt Relief online quote tool. Estimates are for an individual living in California with $25,000 in debt. The estimated fees for the above sample program were quoted as: "No upfront fees"

Reputation

Reputation - 9.7 / 10

Despite recent legal action, Freedom Debt Relief has always enjoyed a great reputation among those who have used the service. In an industry fraught with complaints and misleading sales practices, Freedom manages a A+ BBB rating that is supported by almost five times more positive reviews than negative. Additionally, the company has a 9.1 Trustpilot score with an incredible 89% positive reviews out of more than 7,500. Customers routinely praise the company for delivering on its promises, and its attentive and non-judgmental customer service. The CFPB Enforcement Action The Consumer Financial Protection Bureau (CFPB) recently filed a lawsuit claiming that FDR failed to disclose that certain creditors will not negotiate with debt settlement companies. FDR strongly disagrees with this claim. FDR has developed strategies to negotiate settlements with debts from all creditors. In fact, since 2010, FDR settled $1.2 billion in debt (nearly 200,000 accounts) for clients with accounts from the credit card issuers listed in the complaint.  ConsumersAdvocate.org cannot judge the merits of the CFPB’s enforcement action against FDR at this time. But the claims—even if true—are limited to whether FDR adequately disclosed its ability to negotiate with certain creditors. ConsumersAdvocate.org is not aware of any claims that FDR has unlawfully charged consumers or otherwise failed to provide services to its customers. You can find more information about the lawsuit at the CFPB’s site here.

Company Details

Year Founded
2002
Number of Clients Served
400,000
Amount of Debt Settled
$7,000,000,000

Compliance & Accreditations

AFCC Membership
Accredited Member
IAPDA Accredited
Yes
FTC Compliant
Yes

Online Reviews

Trust Pilot Rating
9.1 out of 10
BBB Rating
A+
Number of BBB Positive Reviews
447
Number of BBB Neutral Reviews
17
Number of BBB Negative Reviews
81

Contact & Additional Information

Homepage URL
Headquarters Address
1875 S Grant St., San Mateo, CA, 94402
The CFPB Enforcement Action

The Consumer Financial Protection Bureau (CFPB) recently filed a lawsuit claiming that FDR failed to disclose that certain creditors will not negotiate with debt settlement companies. FDR strongly disagrees with this claim. FDR has developed strategies to negotiate settlements with debts from all creditors. In fact, since 2010, FDR settled $1.2 billion in debt (nearly 200,000 accounts) for clients with accounts from the credit card issuers listed in the complaint. ConsumersAdvocate.org cannot judge the merits of the CFPB’s enforcement action against FDR at this time. But the claims—even if true—are limited to whether FDR adequately disclosed its ability to negotiate with certain creditors. ConsumersAdvocate.org is not aware of any claims that FDR has unlawfully charged consumers or otherwise failed to provide services to its customers. You can find more information about the lawsuit at the CFPB’s site here: https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-freedom-debt-relief-misleading-consumers-about-its-debt-settlement-services/

Leave a comment for Freedom Debt Relief
Minimum 2-3 sentences.
 No maximum length.
* What's Your Rating?
To make this comment as helpful as possible for our community, please provide at least 2 sentences.

6 Customer Comments & Reviews

Loading Reviews ...
K
Kelly
Roseville, Michigan
7/19/2017
I would never recommend freedom debt relief they hire people and they don't train them to tell you the truth I ended up having to pull one of my accounts out because they lied to me and said my husband wouldn't be on it and he was so it ruined his credit


B
bill
Greenville, North Carolina
7/12/2017
excellent experience and program will allow to make extra fund payments to quickly pay off credit card debts


Sharon M
Neptune City, New Jersey
5/8/2017
I naively thought that this company would have my back and protect me from creditors, but found out the hard way that unless I had a decent amount of money in my account (I paid $800 per month), the process of freeing me from my debts would be a long process with no protection from being sued. Two very small accounts were settled quickly, but my nightmare was American Express. They do not negotiate with anybody and I wound up being sued. Freedom did not protect me like I thought they would and I got out of my contract with them ASAP. They should have warned me that this might happen, but they didn't.


P
P A
Tucson, Arizona
4/12/2017
Truthfully, I never even got as far as signing up for the program. I owed about $45,000 in debt and the agent told me I would have to pay $45,000, put into an escrow account to the tune of $800 a month (more than the payments to my cards). I asked if they negotiated the amount down with the creditors and he laughed at the idea. Then I get this contract to sign that says the amount will be negotiated down to $22,000 and that they will charge $9500 up front and then 1.5% of the amount owed, per year which brought the amount up to the original amount - just that half of it now goes to them. I can cancel at any time but I still will owe the $10-20,000 in fees. I thought that was outrageous and... Read More


R
Rebecca B
, Georgia
4/12/2017
Right now I am frightened. No one from fdr contact me. I get threatening letters from creditors and calls. I can't afford to save very much money each month but it would be nice to try to pay off the smaller ones. I feel trapped and alone.


T
Teleah
Van Nuys, California
11/23/2016
I'm more stressed out than I was before I signed up. The person I signed up with stop responding to my calls and emails after i signed up. I owe more than I did before I signed up with FDR on one account, My check is being garnished for another account enrolled in the program and the representatives tell me now that they don't negotiate until funds build up. Ok, you don't contact the creditors to at least inform them your client is enrolled in the program?



Top Rated
Our Partner
9.7 / 10
  • Free, personalized evaluation from certified debt specialists
  • Rated A+ by Better Business Bureau
  • $7 billion in debts settled
  • Resolve debt in 24 to 48 months
  • American Fair Credit Council accredited
  • For people with $15,000 in unsecured debts and up
  • Get a free savings estimate
  • No upfront fees
  • ConsumersAdvocate.org Notice: Freedom Debt Relief was recently the target of a Consumer Financial Protection Bureau lawsuit regarding FDR’s disclosure of certain terms. Please click here for more information.