Important Information for Freedom Debt Relief Clients
AGREEMENT WITH THE CONSUMER FINANCIAL PROTECTION BUREAU
Freedom Debt Relief has been in the news lately, so we want to make sure that you, our valued client, know the facts. More than ever, we want you to know that we remain committed to helping people take control of their finances and get out of debt, as we have since 2002. Of course, we understand if you have a few questions.
July 9, 2019 — Freedom Debt Relief has settled the case filed by the Consumer Financial Protection Bureau (CFPB) in November 2017. Over the past year and a half, we have worked closely with the Bureau to address their concerns, provide insights into our debt relief program, and to ensure that we continue to serve our clients. In resolving the case, we have agreed to make some changes to our disclosures and policies to enhance our program, many of which were implemented when the case was first filed. Since 2002, Freedom Debt Relief has been committed to helping consumers who are struggling with debt to take control of their finances and get on a path to financial wellness. Moving forward, we will continue to work alongside the CFPB as an industry partner to support their work, particularly in the consumer debt space. As the leader in debt settlement, we continue to work hard every day to deliver outstanding service and the best possible outcomes to consumers who turn to us for help.
Freedom Debt Relief has entered into an agreement with the Consumer Financial Protection Bureau (CFPB) related to the November 2017 action about certain business practices. Over the past year and a half, we have been working closely with the Bureau and we updated our policies, compliance review, disclosures, and fee structure to better educate consumers about how our debt settlement program works to their benefit.
The complaint by the CFPB was initiated in November 2017 and covered enrolled clients between 2010 and 2017.
As soon as we heard about the CFPB concerns, we immediately took action. Freedom Debt Relief updated our policies, compliance review, disclosures, and fee structure to become more transparent about the debt settlement strategies we employ to get the best outcomes for our clients.
A small number (less than 2%) of Freedom Debt Relief clients were impacted. Those clients will be contacted by the CFPB, and the Bureau will determine the amount and approach to distributing restitution to impacted clients.
As the nation’s largest debt settlement company, we have been dedicated to helping people overcome debt for more than 15 years. Over 650,000 Americans have enrolled in our program, and we have settled more than $10 billion in debt for our clients. More than 30,000 consumers have rated us on average 4.5 to 5 stars on major online review sites, such as Trustpilot, Lending Tree, Consumer Affairs, Best Company, and the BBB. You can visit FreedomDebtReliefReviews.com to learn more from our satisfied clients.
We updated our policies, compliance review, disclosures, and fee structure to become more transparent about the debt settlement strategies we employ to get the best outcomes for our clients.
Freedom Debt Relief has agreed to pay the Consumer Financial Protection Bureau a total of $25 million, with $20 million of that going to restitution for clients that were impacted. The Bureau will determine the amount and approach to distributing restitution to impacted clients.