Who Knows About FREEDOM DEBT RELIEF?

I've read the California lawsuit against Freedom Debt Relief, and it really is something that can be levied against any debt settlement company who uses a third-party savings provider (such as Noteworld or Global Client Solutions) to save the client funds.  So if you're bashing them on that, then you can't promote debt settlement at the same time. 

I think the complaints with the BBB is a concern, but they do service a lot of clients and complaints are almost inevitable in the debt settlement space. 

As with anything, talk to a number of companies. 

 

Do you know if there are any debt settlement companies who allow their clients to save the money in their own account then? Does Freedom Debt Relief ever do this or no?

I see a lot of people on here talking about FDR, but none seem to have actually used the program. Please allow me to give a first hand opinion of what to expect. First, I have been in the program now for 2 1/2 years and do not work for the company. Second, this is not a quick debt eliminating program, it will take time and money. Third, please try to understand exactly what debt-SETTLEMENT is. It does not pay the original creditor the debt you incurred. The system waits for the accounts to charge off and go to a collection agency to better negotiate a lower pay off. Please know that this will damage your credit score and report greatly, but since you have so much debt you already cant pay for, you have no business using your credit to get more anytime soon; remember, the goal is to get debt free....you will not walk away unscathed. You pay FDR a calculated monthly amount based on the total amount of debt you wish to settle. A portion of the payment will be a program fee to use FDR, (hey, this is America, it's called capitialism) You pay into an escrow account every month. They will try to negotiate the lowest cards first with the collection agency. Example: card with balance $2100. Collection agency now owns the account because the original creditor charged off the card and sold it to them for pennies on the dollar of the original amount. FDR attempts to negotiate a payoff with the Collection Agency for say, $900. If they accept, you just saved $1200. Keep in mind you must have at least accumulated this amount in your escrow account before they will negotiate the debt. Once this is done, the whole thing starts over again with the next card etc. Is this snag free?......NO. There will be times when the Collectors will not budge on the negotiation price, but what ends up happening is that they eventually cave and settle for less, or they sell it to another Collector for pennies on the dollar amount they paid for it....eventually somebody is gonna want to at least get some $$. Your credit report will show CHARGE-OFF, but with the economy the way it is nowadays, the creditor you originally owed (ie.Washington Mutual) is now Chase and does not have your old records, dispute it with  Equifax etc.....chances are they will get removed...restoring your credit report and score back to normal. FDR is not the best at communication, you will need to stay on them to do their job, but the program does work. Is it expensive, YES. Does it do what it is supposed to do, YES...for the most part. Like with anything, it is not 100%, but when you have no other options, take the least damaging path. I am now 3 payments away from settling my last credit card. I started with about $17,000 debt. By the time I am done, FDR will have settled all of this for about $6500 total...not bad considering. I did give them about $3500 in fees over the course to do this, but still $10k is still less than $17k. Hope this helps clear up any questions about the validity of the company.

 

 

I've been working with Freedom Debt Relief since May '08.  My debts were considerable (around $65,000) and they set me up with a 30-month plan, with payments of $1300.  I had ten creditors total, and they've settled six of the ten accounts already.  They settled two of my accounts for under 30% of what was owed.  I did my homework prior to signing on with Freedom, and was, admittedly, a little nervous after reading some of the negative comments posted on various sites, but the overwhelming majority of what I'd read was positive.  I have had a very positive experience working with this company, and would recommed it to anyone who is considering a bankruptcy alternative.

Does Freedom Debt Relief offer credit counseling services?

Does Freedom Debt Relief offer credit counseling services? I think so, it says so on their site:

http://www.freedomdebtrelief.com/otheroptions.php

If you are looking for other debt relief options, aside from credit counseling, feel free to fill out one of the forms here at destroydebt.com and consult with a financial expert for free.

Does Freedom Debt Relief deal directly with debt collectors? They're calling me off the hook. It's crazy

Hi Lorna Fay. I believe Freedom Debt Relief speaks with debt collectors in reference to a consumer's debt, but for the most part I think the latter wouldn't want to. As much as possible, debt collectors want to deal with the consumer directly...

Why do people trash Freedom Debt Relief ? I have been involved with them for about 22 months now. I had 5 creditors ($56000), they have worked with creditors and 2 will be settled after 24th month. That leaves 3 left and 1 is very small. I can view credit info onliine and have not had any problems when called them. Now for what you must understand:

This is debt settlement, once settled it is gone. generally settlements are about 40%-50% of what is owed

your credit score will go down..price to pay..but it would go down with every late payment anyway..and you will stop running on treadmill and get settled

they were upfront about 15%  fee of total debt as fee (5% retainer, 10% service) in which its paid the 1st 19 months..(there virtually no equity in your account to settle large accounts until after the 4th month in which the fees are reduced and money accrues)

you still can be sued..I had 2 take me to court..FDR did help settle them to keep them from garnishment and they seem to be in liine

Cease and Desist letters must've been sent they did not call me but twice and I had to refer them to FDR and have FDR contact them. 

Note that late fee and credit balances will iincrease on your credits accounts during the holding time and that may come close to increasing amount owed by 50% or more

was not advised by them that the forgiven debt by credit cards is considered income and can be taxed. it is in contract I signed.

I think what you need to have is patienece for this to work. Creditors have stopped calling me and I just concentrate on meeting payment per month.