#FREEDOME DEBT RELIEF FULL#
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Working with Freedom Debt Relief may drop your credit score due to nonpayments.

How does Freedom Debt Relief affect your credit? Freedom Debt Relief agreed to pay $20 million in restitution and $5 million in civil penalties. In July 2019, the Consumer Financial Protection Bureau (CFPB) settled with Freedom Debt Relief over a lawsuit that alleged the company failed to settle debts as promised and misled consumers about fees. If the company does not provide these details, you can contact the Federal Trade Commission. The possible negative consequences of not making payments to creditors.The amount you need to save before the company can start negotiations with creditors.But the company notes recent top settlements on its site, and your debt reduction percentage can drop below 50% after you’ve paid your fees.įreedom Debt Relief - along with all other debt relief companies - must provide information about its program before you sign up, including: As we noted above, Freedom Debt Relief states that you can settle for as little as 50% of what you owe - or even less. So, for example, if the company settles a $15,000 debt, you should expect to pay $2,250 to $3,750 in fees.Īs for how much you can save, that depends. However, the company does not charge any fees until after it negotiates down your debt and you agree to the settlement. It cites a typical fees range of 15.00% - 25.00%, though that depends on the state in which you live. Freedom Debt Relief: Debt settlement eligibilityįreedom Debt Relief does not operate in the following states:įreedom Debt Relief is a bit vague regarding fees and how much you can save. It will accept some private student loans on a case-by-case basis. However, Freedom Debt Relief can help with medical bills, credit card debt and personal loans. Federal student loans, auto loans and mortgages do not qualify. The company can only help with unsecured debts that don’t require collateral. It also recommends you enroll any credit card you have with a balance of more than $500. Debt relief programs only cover larger amounts of debt, as creditors usually won’t settle smaller debts you could easily pay off in a short period.

#FREEDOME DEBT RELIEF FULL#

See freedom from debt: Once you’ve paid off your debts, your creditors should report the payments to the credit bureaus when either the account is settled in full, settled, paid, paid by settlement or settled for less than the full amount.įreedom Debt Relief requires you to have a minimum amount of $7,500 in debt to qualify for its services.If Freedom Debt Relief reaches an agreement, it’ll immediately contact you to get authorization for the settlement. When you have enough funds to start paying off the debt, the company will start contacting creditors to negotiate a reduction in your debt. Arrange your program: Freedom Debt Relief sets up a Federal Deposit Insurance Corp.-insured bank account in your name where you’ll deposit money to pay off your debts you’re in complete control of the bank account.It could also knock out your debt faster. Set custom plan: The company develops a program that may be cheaper than just making minimum payments.

#FREEDOME DEBT RELIEF FREE#

Get free debt evaluation: A certified debt consultant goes over various strategies with you to help determine whether you’re a good fit for the program.(This can be risky, but we’ll touch on that later.)įreedom Debt Relief’s program works in four phases: Then, the debt settlement company contacts the creditors on your behalf to negotiate terms. Typically, the company will ask you to stop paying creditors and save your money until you have a predetermined amount. Under a debt settlement program, you pay back a debt in multiple payments that are significantly lower than the total amount you owe. Settlements could be for 50% or more depending on how much you owe and where you live, but you’ll pay more depending on what fees you owe Typically 15.00% - 25.00%, depending on the state in which you live Freedom Debt Relief: What you need to knowįreedom Debt Relief: What you need to know Freedom Debt Relief at a Glance.You should consider your options carefully before using a debt relief program such as the one offered by Freedom Debt Relief. But using debt settlement services can torpedo your credit score and may result in lawsuits from creditors or endless calls from collectors. Freedom Debt Relief, a debt settlement firm based in California, has been creating custom programs for consumers for nearly two decades.ĭebt settlement companies offer to help consumers reduce - and even remove - debt at a fraction of the cost.

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