Freedom Debt Relief may be a possibility for you if you’re feeling overwhelmed by debt, despite the fact that others are quite concerned about freedom debt relief lies.
Many people who are in debt and are only able to make minimum payments each month wonder if they qualify for one of the many debt settlement programs.
These programs promise to fast eliminate debt. They frequently divulge all of your outstanding credit debt data to a business that makes a debt-resolution promise. Anyone who is tired of receiving calls from debt collectors may think it sounds like a fantastic chance.
For individuals who need it, getting debt relief through a standard program can be beneficial, but you need to make sure the firm you choose to work with is trustworthy. Debt reduction firms may make you unrealistic promises, but the reality often falls short.
- Advertisement -
A debt management organization cannot assure you that your creditors will accept smaller payments. Your creditor alone has the authority to do this.
Are Freedom Debt Relief Lies? Things to Consider
You may already be aware of the CFPB’s lawsuit against Freedom Debt Relief for deceiving customers about its debt settlement services. According to the CFPB, Freedom forced customers to negotiate their settlements and misled customers about the cost of its services.
Freedom Debt Relief was accused by the CFPB of failing to inform customers of their rights about the money they had placed. Last but not least, it claimed that Freedom charged customers without paying off their debts.
Freedom Debt Relief did not accept or deny “… any accusations in the First Amended Complaint, save as clearly stated in this Order,” according to the order detailing the terms of the judgment, even though the matter was ultimately resolved for $25M.
Freedom Debt Relief did not confirm or deny the accusations, so does the business lie? Freedom Debt Relief: Is it a fraud?
So, Is Freedom Debt Relief Lies?
No, not always. I’m unable to confirm whether a single sales agent misled you, but in order to keep you safe, Freedom Debt Relief is required to follow CFPB regulations. Additionally, you may be assured that many people have had positive results from using Freedom Debt Relief.
Even though Freedom Debt Relief has an A rating with the BBB and a 4.4 based on over 3000 reviews on Consumer Affairs, not all of the reviews are positive.
For instance, Freedom has a 1.5 rating based on 31 Yelp reviews, and there are no Freedom Debt Relief reviews on Google, which I find odd considering that I believe both of those review sites tend to be objective. The only thing that was discovered was Freedom Financial Network’s Google profile, but no reviews.
Freedom Debt Relief is a reliable company
Freedom Debt Relief is among the largest debt settlement firms in the United States, serving those who are in debt. Those who elect to use the software will receive a free introductory consultation. During the consultation, you will provide a list of your debts and creditors. They will explain how your service works.
Despite receiving 4.3 out of 5 ratings on its Better Business Bureau profile, Freedom Debt Reduction has gotten hundreds of complaints for mismanagement of consumer payment programs, dishonesty, and general debt relief misinformation.
As a result, before signing up with Freedom Debt Relief, you should carefully analyze your options. It is not suitable for everyone.
Can anyone use Freedom Debt Relief?
Clients with credit card bills, medical debts, and private student loans are helped by Freedom Debt Relief. To work with Freedom Debt Relief, you must have at least $7,500 in debt. You’ll also have to:
- Pay a fee of 15% to 25% of the entire unsecured debt.
- Stay with the company for at least 24 months.
- Commit to making periodic payments toward your overall settlement.
You must also know that any deal will be contingent on your creditors’ agreement.
Understand that working with a debt settlement service will have a negative impact on your credit score. Because you will not be making any payments for at least 24 months, your credit score will suffer greatly. If you require credit, you will most likely be unable to receive it at this time.
Understand the Client Services Agreement
That being said, it’s crucial to carefully read the Client Services Agreement when working with Freedom Debt Relief (or any other debt relief organization).
The client services agreement from Freedom Debt Relief is thankfully available online. So you can readily compare it to what you read in the client services agreement while chatting with a sales agent.
Freedom Debt Relief charges fees
Unlike many other debt settlement companies, there are no upfront fees while using Freedom Debt Relief’s service. You only pay them when they have spoken with your creditors and cleared your debts.
If you agree to cooperate with them, they will give you access to an online dashboard where you can see the status of each of your obligations. This dashboard displays all of the money you’re saving as well as the debts you’ve resolved with each creditor.
However, until all of your obligations have been resolved and paid back, you won’t know for certain how much you owe them for their services. You can owe anything from 15% to 25% of the settlement sum in various circumstances.
Consider that. Let’s say Freedom Debt Relief is successful in using debt settlement to reduce your debt by 40%. They then add 20% in costs for their services. In the end, their debt settlement procedure only allowed you to save 20%. That might not be much, depending on how much you now owe.
What alternatives exist to Freedom Debt Relief?
If you’re motivated to pay off your debt, you don’t need to use a pricey firm like Freedom Debt Relief. They cannot guarantee that you will be able to settle your debt for a specified amount of money, and the cost of their services may significantly reduce the amount you have saved.
While it may seem appealing to delegate responsibility for your payments, you are unlikely to save much money and may seriously harm your credit. Consider attempting to settle your debt on your own.
You can settle the debt, save money, and keep out of court by negotiating a settlement with your creditor. Your prospects of reaching a settlement are even higher if you have been sued by a debt collection company or other debt buyers.
The majority of collection organizations buy debts from creditors (banks, credit card companies, etc.) for as little as 8% of the total debt sum. This implies that even if you paid off 50% of your debt, the collection company would still make a sizable profit.
In reality, debt buyers and collection agencies are likely to accept anywhere between 1% and 60% of the total loan. Original creditors, on the other hand, typically agree to a settlement for 20% to 70% of the initial sum.
Guidelines For Discussing Debt Settlement
The following guidelines can help you negotiate your own settlement:
- before negotiating, determine the goal settlement amount you can afford.
- Start modestly: Your opening offer ought to be greater than 20–30% of the whole sum.
- Give a precise sum to make it appear as though you have manipulated the budget’s statistics.
- Don’t be afraid to discuss your finances, especially if you’re having trouble paying your bills.
- Don’t accept a price you know you can’t afford.
I would not make the general assertion that Freedom Debt Relief lies. It does not, for example, offer Freedom Debt Relief the benefit of the doubt.
Are there moments when customers believe they have been misled? Examine the reviews and other sources on your own to make the best selection for your own scenario.