Who Is Freedom Debt Relief For?
Freedom is best suited for people with a large amount of debt who have difficulty making their monthly payments. The company might not be a good option for people who only have a small amount of debt as it charges high fees for its services.
Freedom Debt Relief reviews mention that consumers who work with this company can expect to have their debt reduced by 50% to 70%.
Freedom Debt Relief might be a good choice for those who’ve already tried various methods to get out of debt, short of filing for bankruptcy, and need a reliable negotiator.
Taking a Closer Look at the Largest Debt Relief Company in the US
Reviews of Freedom Debt Relief usually list the company as the number-one debt settlement company in the US. Since its founding in 2002, it has resolved more than $15 billion in debt.
Currently, the company has two locations, one in Tempe, Arizona, and another in San Mateo, California. According to the official website, it has over 2,200 employees in these two locations, and with 20 years of experience, it’s among the best companies in the industry.
You can reach Freedom Debt Relief via several customer service lines and email addresses. The channel of communication will likely depend on the nature of your inquiries.
The Application Process
If you wish to apply for the settlement program with Freedom Debt Relief, your debt must amount to at least $7,500 and, typically, you should be behind on your payments.
To enroll, simply:
- Visit the official website
- Enter the amount you owe
- Specify whether you’re behind on your payments or not
- Select residential state
- Select credit card score
- Enter type of debt
- Add contact info
Following this step, the website will generate a solution. Having completed our review of Freedom Debt Relief, we’d also advise you to reach out to your debt settlement professionals and ask questions about the programs, debt in general, and possible consequences of joining the program, which is a step we’d also recommend.
Key Features
Now that you know how the application process works, it’s time to take a closer look at the company’s programs. We’ll go through how Freedom Debt Relief works, the debt settlement services it offers, the customer service, and other vital information that will give you a better picture of the company.
Services
Freedom Debt Relief specializes in unsecured debt, meaning debt without collateral. The most common subtypes of unsecured debt are:
- Credit card debt: this is probably the bread and butter of the company’s services. Currently, the median interest rate for credit cards hovers at around 20%, so it’s easy to see why people might need help with repayments.
- Private student loans: the company may also take on personal student loan cases. However, those who need help with federal student loans might want to look elsewhere because the company doesn’t help with settling those.
- Medical bills: reviews for Freedom Debt Relief also point out that the company helps its clients tackle medical bills by collaborating with medical providers and hospitals to negotiate a lower settlement.
Note that some types of debt, such as vehicle loans, mortgages, or overdue taxes generally can’t be negotiated, so Freedom Debt Relief will not be able to help you if you have such debts.
The Settlement Process
After submitting your application form, you’ll get a free consultation with a company expert to help you decide whether debt settlement is the right course of action. During this appointment, you’ll go over every detail of your situation and estimate how much you could save and how long you’ll be in the program.
At this point, most Freedom Debt Relief program reviews will tell you that the provider follows a pattern typical for debt relief companies.
As you enroll, you’ll stop making your debt payments directly to your creditors and open a separate account instead, where you’ll deposit your monthly payments. Freedom Debt Relief will help you determine the specific amount of money you need to deposit each month.
As mentioned, you’ll no longer make payments to your creditors, which means you’ll be vulnerable to late fees and interest charges. These delinquent accounts will stay on your credit history for seven years.
While you are making your monthly payments (as Freedom Debt Relief reviews and testimonials point out), your debt experts will start negotiating a settlement with your creditors that’s ideally significantly less than the total amount of money you owe.
If your creditors accept the settlement, you’ll pay them either in monthly installments or by transferring a lump sum from the savings account. At this point, you will also pay your debt experts for their services.
Costs, Terms, Fees, and Rates
Debt relief companies can’t charge upfront fees by law. Only after the debts are settled can they charge their clients. Most expert and consumer reviews on Freedom Debt Relief will tell you that your total costs and fees depend on various factors. However, it’s estimated you’ll pay between 15% and 25% of your total debt in fees.
The state you live in will also play a role in the total amount of your costs, along with the speed of your monthly contributions, the result of the settlement, and several other factors.
The duration of the program is unique to each client. In general, customers manage to receive a settlement within six months following enrollment. Still, this will depend on how much money clients can save every month.
Multiple reviews on Freedom Debt Relief mention that customers who commit to a monthly payment schedule usually manage to get out of debt within two to five years. During our independent research, we contacted Freedom Debt Relief representatives and were able to confirm this.
Support
In terms of customer service, you get the standard package with Freedom. You can reach out to the representatives by phone or contact them via email. They will take your calls every day of the week: from 8 a.m. until 9 p.m. Monday through Thursday; 8 a.m. until 8 p.m. on Friday; and 10 a.m. to 8 p.m. on Saturdays and Sundays.
The company’s certified debt consultants are available every day of the week (8 a.m. until 11 p.m. Monday through Friday and 9 a.m. to 9 p.m. Saturday and Sunday).
If we were to list Freedom Debt Relief’s pros and cons, we would have to mention the lack of an online chat as a negative, since not having this feature on the website makes getting quick answers to debt-related questions almost impossible.
Among the positives, the online client dashboard deserves to be highlighted as a comprehensive digital area where you can upload documents, track your progress, and oversee the dynamics of your debt settlement process.
The website can serve as an outstanding resource for anyone who wishes to learn more about debt-related problems, processes, and finances.
Company Reputation, Lawsuits, and Freedom Debt Relief Reviews and Complaints
Before you opt for any of the debt settlement services on the market, it’s strongly recommended that you do a check on each company and search the Consumer Financial Protection Bureau website.
If you do that, you will probably find information about the Freedom Debt Relief lawsuit of 2019. This case actually started two years earlier, with the CFPB suing the company for deceiving its customers. The CFPB stated that the debt settlement company charged its clients without settling their debt, made them negotiate their settlements, and lied about fees. The case ended with Freedom Debt Relief being ordered by the court to pay $25 million in civil penalties and restitution.
Some Freedom Debt Relief reviews on BBB also mention that some consumers had problems with billing and similar issues. Several customer reviews of Freedom Debt Relief mention that the settlement can take longer than expected. Other clients say they weren’t informed about possible tax liability issues before joining the program.
However, even though the BBB has not accredited the company, the users gave it a solid 4.3 out of 5 score. Freedom also has a 4.5 rating on Trustpilot, a result of over 36,500 reviews, which indicates that the overwhelming majority of customers are perfectly satisfied with the service. What’s more, the company has a good record and reaches out to solve and respond to all negative comments from users, further demonstrating its commitment to customer satisfaction.
The Verdict
Our Freedom Debt Relief review has found that the company has helped thousands of people get out of debt and that this provider is an excellent choice if you’re considering using a debt relief company.
Freedom boasts good reviews, and debt relief through settlement can, in some cases, be your best option. If, for example, you wish to avoid bankruptcy and decide on debt settlement instead, do your research, compare companies, and take advantage of Freedom Debt Relief’s free consultation to get more information.
The company’s positive reviews and money-back guarantee show that it is committed to helping its customers get out of debt and providing them with the best possible experience.
Pros & Cons
Pros:
- Largest debt settlement firm in the US
- Certified expert help
- Debt progress tracking
- No upfront fees
Cons:
- Fees can mount up to 25% of total debt
FAQs
Is Freedom Debt Relief a good company?
Freedom is a legitimate company that might be able to help you negotiate your debt settlement with creditors. It’s one of the largest companies in the industry and has been around for over 20 years.
Is Freedom Debt Relief bad for your credit?
In most cases, opting for a debt settlement will damage your credit because your history will show that you didn’t pay the full amount back. Also, Freedom Debt Relief requires you to open a separate savings account and asks you to stop paying your creditors until a settlement has been reached, which can damage your credit score.
How long does Freedom Debt Relief affect your credit?
Any damage to your credit score remains on your credit history for seven years, so this will also be the case with Freedom Debt Relief.
What is the cost of Freedom Debt Relief?
It depends, because each case is unique. Freedom Debt Relief reviews various factors, such as the amount of debt and the creditors, to determine the overall cost of debt settlement. That being said, experts from Freedom estimate that clients will pay the company 15% to 25% of their total debt in fees.
