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Freedom Debt Relief Review
ConsumersAdvocate.org Rating: 4.8 / 5 (Excellent)
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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 615,000 clients across the United States.
ConsumersAdvocate.org Notice: Freedom Debt Relief was recently the target of a Consumer Financial Protection Bureau lawsuit. Please scroll down to the bottom of the review for more information.
How is Freedom Debt Relief rated?
Breakdown
4.9/5
Reputation
5.0/5
Qualification
5.0/5
Pricing & Fees
4.5/5
Services
Overall Rating: 4.8 / 5 (Excellent)
With over $10 billion in debt resolved since 2002, FDR is an excellent choice for anyone struggling with over $15,000 in debt.
As a founding member 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 upfront fees, making risk minimal.
The company is also very upfront 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 - 4.5 / 5
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 are 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 50,000 accounts per month totaling over $215 million in debt.
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 | |
| Program Length | 24-48 months |
| Additional Benefits | Online Management |
Qualification
Qualification - 5 / 5
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 - 5 / 5
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 the 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 - 4.9 / 5
Despite recent legal action, Freedom Debt Relief has always enjoyed a great reputation among those who have used its service.
In an industry fraught with complaints and misleading sales practices, Freedom Debt Relief has always enjoyed a great reputation among those who have used its service.
On the Better Business Bureau website, Freedom Debt Relief is supported by over ten times more positive reviews than negative.
Additionally, the company has a 9.1 Trustpilot score with 92% of its 20,000 reviews rating the company as excellent or great. Customers praise the company for delivering on its promises, and its attentive and non-judgmental customer service.
Company Details
| Year Founded | 2002 |
| Number of Accounts Settled | 600,000 |
| 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 5 |
| BBB Rating | A- |
| Number of BBB Positive Reviews | 1,623 |
| Number of BBB Neutral Reviews | 38 |
| Number of BBB Negative Reviews | 144 |
| Date Collected | 2018-04-12 |
Contact & Additional Information
| Homepage URL | |
| Headquarters Address | 1875 S Grant St., San Mateo, CA, 94402 |
The CFPB Enforcement Action
On July 9, 2019, Freedom Debt Relief agreed to pay $20 million in restitution and $5 million in penalties to settle a lawsuit that was brought against it by the Consumer Financial Protection Bureau (CFPB).
The settlement agreement as approved by the court can be found here: https://files.consumerfinance.gov/f/documents/cfpb_freedom-debt-relief_stipulated-final-judgment-order_2019-07.pdf
On July 9, 2019, Freedom Debt Relief agreed to pay $20 million in restitution and $5 million in penalties to settle a lawsuit that was brought against it by the Consumer Financial Protection Bureau (CFPB).
The settlement agreement as approved by the court can be found here: https://files.consumerfinance.gov/f/documents/cfpb_freedom-debt-relief_stipulated-final-judgment-order_2019-07.pdf
#1
Our Partner
12 Reviews
Free, personalized evaluation from certified debt consultants
- Over 850,000 clients have enrolled in the Freedom Debt Relief program since 2002
- American Fair Credit Council accredited
- Settled over $15 billion in client debt since 2002
- Recommended for people with $15,000 in unsecured debts and up
- No upfront fees
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