Freedom Debt Relief – How good a company is it?

No one from this forum has responded to a full refund offer with their client ID number as requested to clientservices@ (i will not type the full address, as the moderator does not want that). This confirms to FDR that these misstatements are not from actual clients, but from participants misrepresenting themselves with ulterior motives. I do hope that this message gets retained within the post.

The individual who claims it is 'fun' to slander us, we cannot comment on that other than to take it at face value.

The states that have passed debt settlement laws passed them very recently (Colorado in 2008, Utah in 2009, Maine in 2008... there was no licensing procedure before those dates). We are actively participating with NCCUSL in 15 states to pass additional consumer protection laws this year. When those laws pass, we will get licensed. We were the first to be licensed in Utah, one of the first three in Colorado and Maine and will be at the front of the line when additional states pass legislation. We are also proactive in getting audited and certified by real third party verification firms, including TASC, BDI, and IAPDA (and welcome any person to come in anytime and review our operation or suggest ways to improve or help our clients).

We, as a company, remain committed to helping real people with real financial problems and strive for excellence. We remain steadfast in our motivations and are proud of the work that we do. I am dissapointed that this forum exists and at the malice intended, but again we can only do the best we do every day.

Best.

It has come to the BBB's attention that Freedom Debt Relief has continued to operate despite a desist and refrain order issued through the Department of Corporation on May 29, 2008.

Government Actions!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!

On May 29, 2008 The California Corporations Commissioner filed a desist and refrain order against Andrew Housser Founder and CO-CEO of Freedom Financial Network, LLC, and Bradford Stroh Founder and CO-CEO of Freedom Financial Network "FFN", LLC, and it's affiliated entities, Freedom Financial Network, LLC, Freedom Debt Relief, Inc.; Freedom Debt Relief, LLC; FDR; Alivio Holdings, LLC; Bills.com, Inc.;Bills.com, LLC; Bills.com; Freedom Tax Relief, LLC; Alivio Mortgage, LLC for being in violation of sections 12200, 22104, 22153 and 22154 of the Financial Code.

Without any admission of wrongdoing the complaint alleges that FFN engaged in the business as a bill payer or prorater as defined in the Check Sellers, Bill payers and Proraters Law, California Financial Code section 12200 without a license
BBB Definition: license - A permit or accreditation required by the State, Province, County or Municipality where a company is located indicating competence or professional certification that allows the company to provide products or services related to their particular field or industry.
from the Commissioner and in violation of that law including overcharging consumers in violation of Financial Code sections 12314 and 12314.1. The order states that Alivio Mortgage, LLC a Delaware limited liability company that is affiliated with both Freedom Debt Relief and Freedom Financial Network failed to get approval from the Department of Corporations to move their place of business which is in violation of Financial Code section 22153. It is also alleged that Alivio Mortgage, LLC failed to meet the statutory net worth requirement which is in violation of Financial Code section 22104.
Alivio Mortgage, LLC, co-located with the other businesses of Housser and Stroh conducted business at a place in which business other than making loans is engaged in without either written notification to and the authorization of the Department of Corporations which is violation of Financial Code section 22104.

It was ordered pursuant to Financial Code section 12103 that Andrew Housser and Bradford Stroh, and their affiliated entities, FFN to desist and refrain from engaging in business as a bill payer and prorater unless and until they are licensed or exempt and from violating Financial Code section 12314 and 12314.1. It is also ordered pursuant to Financial Code section 22712, that Alivio Mortgage, LLC and any and all officers, directors, employees , independent contractors, agents, and affiliates operating on it's behalf to desist and refrain from the following: 1) changing locations without notification to and the approval of the Commissioner: 2) failing to maintain minimum net worth of 25,000: 3) conducting business at a place in which other than making loans is engaged in without either written notification to and the authorization of the department; 4) using advertising without prior approval from the commissioner.

On October 30, 2008 the San Mateo County District Attorney's office along with the California Corporations Commissioner filed a complaint against Freedom Debt Relief, LLC, Freedom Debt Relief, Inc., Freedom Financial Network "FFN", LLC, Freedom Mortgage, Alivio Mortgage, LLC, Alivio Holdings, LLC, Bills.com, Freedom Tax Relief, LLC , Andrew Housser and Brad Stroh. The complaint states that since at least 2003 and continuing thereafter, the defendants and their affiliates have offered financial services to consumers including debt negotiation and debt reduction services.

Without any admission of wrongdoing the complaint alleges the defendants of making untrue or misleading statements and omission of material facts (Business & Profession code section 17500), unfair competition by all defendants (Business and Professions code sections 17200 and 17203), unlicensed activities ( Financial Code Section 12200) fee overcharges and unauthorized charges ( Financial Code Section 12314 and 12314.1).

The complaint also states that in November of 2007 the Rhode Island Department of Business Regulation's Division of Banking issued an order to Freedom Debt Relief and FFN to immediately cease and desist their unlicensed debt management plan activities in their state and ordered them to refund all fees received relating to all debt management plans currently being serviced.

In 2008 the state of Colorado contacted defendants about their failure to comply with the Colorado Debt Management Services Act. The complaint states the defendants are unlicensed and did not file to register in the time frame required by Colorado law. It is also alleged in the complaint that defendants violated the following legal requirements;
Agreement requirements (neither FDR's current or former agreements comply), Disclosure requirement, Advertising requirements and excessive upfront fees.

The case is currently pending.

THIS ISN'T SLANDER GENIUS. IT'S GOOD OLD FASHION FACTS. WHY DON'T YOU COMMENT ON ALL OF THIS? WHO WAS KICKED OUT FOR MISCONDUCT? We still don't have an answer.

BBB processed a total of 185 complaints about Freedom Debt Relief in the last 36 months, our standard reporting period. Of the total of 185 complaints closed in 36 months, 80 were closed in the last year.
These complaints concerned :
6 regarding Advertising Issues
BBB Definition:

Advertising Issues - Claims alleging print or electronic media advertised claims or practices misrepresent the service or product offer.


1 - Advertisement did not disclose all conditions required to take advantage of an offer
3 - Advertisement misrepresented a service
1 - False or unsubstantiated claims in advertisement
1 - None of the Above - Advertising Complaint Issue
22 regarding Billing or Collection Issues
BBB Definition:

Billing or Collection Issues - Claim alleging billing errors, unauthorized charges, or questionable collection practices.


2 - Failure to provide itemized billing as requested
5 - Improper collection practices
13 - None of the Above - Credit, Billing or Collection Complaint Issue
2 - Unauthorized bank debits
45 regarding Contract Issues
BBB Definition:

Contract Issues - Claim of alleged failure to honor contract or agreement, work performed without authorization, or invalid contract.


21 - Failure to honor a contract or agreement
2 - Invalid or false contract
18 - None of the Above - Contract Complaint Issue
2 - Unauthorized changes to the contract or agreement
2 - Work performed outside the terms of the contract or agreement
32 regarding Customer Service Issues
BBB Definition:

Service Issues - Claims of alleged delay in completing service, failure to provide promised service, inferior quality of provided service, or damaged merchandise as a result of delivery service.
BBB Definition:

Customer Service Issues - Claims alleging unsatisfactory customer service, including personnel's failure to provide assistance in a timely manner, failure to address or respond to customer dissatisfaction, unavailability for customer support, and/or inappropriate behavior or attitude exhibited by company staff.


21 - Failure to provide promised assistance or support for products or services
5 - Failure to respond to phone calls or written requests for assistance or support
2 - Inappropriate behavior by customer service personnel
4 - None of the Above - Customer Service Complaint Issue
1 regarding Delivery Issues
BBB Definition:

Delivery Issues - Claims alleging delayed delivery of ordered merchandise.


1 - Non-delivery of services
8 regarding Guarantee or Warranty Issues
BBB Definition:

Guarantee or Warranty Issues - Claims alleging failure to honor the terms regarding guarantees or warranties.


6 - Failure to honor money-back guarantees
1 - Failure to honor service under the terms of warranties
1 - Failure to provide promised written warranty or guarantee
1 regarding Product Issues
BBB Definition:

Product Issues - Claim alleging a product does not meet the expectations of the complainant, including defective merchandise.


1 - None of the Above - Product Quality Complaint Issue
20 regarding Refund or Exchange Issues
BBB Definition:

Refund or Exchange Issues - Claim of alleged failure to honor company policy or verbal commitment to provide refunds, exchanges, or credit for products or services.


6 - Failure to honor promised refunds, exchanges, or credit
2 - Failure to honor refund, exchange or credit policies
12 - None of the Above - Refund or Exchange Complaint Issue
22 regarding Sales Practice Issues
BBB Definition:

Sales Practice Issues - Claims of alleged sales presentations made in person or by telephone that contain misrepresentations of the product or service, high pressure sales practices, failure to disclose key conditions of the offer, and verbal representations not consistent with written contractual terms or agreements.


10 - None of the Above - Sales Complaint Issue
2 - Sales presentation misrepresented the product
6 - Sales presentation misrepresented the service
1 - Sales presentation not consistent with advertisement
2 - Sales presentation used dishonest sales practices
1 - Sales presentation used high pressure methods
28 regarding Service Issues
BBB Definition:

Service Issues - Claims of alleged delay in completing service, failure to provide promised service, inferior quality of provided service, or damaged merchandise as a result of delivery service.


2 - Delayed completion of service
7 - Failure to honor service estimate or agreement
9 - Improper or inferior service
10 - None of the Above - Service Complaint Issue

These complaints were closed as:
176 Resolved
BBB Definition:

Resolved - The company resolved the complaint issues.


99 - Company resolved
BBB Definition:

resolved - The company resolved the complaint issues.
the complaint issues. The consumer acknowledged acceptance to BBB.
77 - Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.
9 Administratively Closed
BBB Definition:

Administratively Closed - BBB determined that the complaint could not be satisfactorily settled using standard methods of voluntary dispute resolution


9 - BBB determined that despite the company's effort to address complaint issues, the consumer remained dissatisfied.

THIS IS FREEDOM DEBT RELIEF CORRECT? YOU MUST BE DOING SOMETHING WRONG. A lot of complaints there hoss.

Why are you still operating in CA when you were told to stop?

I was just as skeptical as you all but I did go forth and trust FDR with settling my debt. I had about 41k (13cc) so far 10 have been settled in the amount of 17k. I just have 3cc with balance of 9k and hope to be paid of soon. I have been in the program
2 1/2 yrs and very pleased with the service.

Did Any one that has been already helped by Freedom Debt relief have to go to court and work on on your own behalf???

The debt settlement industry is going to have major changes (reform) in the coming months. CCCS companies been reformed, now it's going to happen to debt settlement. Essentially, you can say goodbye to about 90% of the existing debt settlement companies. FDR employees and all other debt settlement employees better start looking at other opportunities... it's just a matter of time.

Power of Attorney needs notarization for all banking transactions so know that there are some legal aspects to not having a notarization placed on that an it needs to have original copies for POA. Ask yourself his why would you want a company to hold POA on your bank account.
As for Freedom Deebt Relief and how they sell you against relying on the BBB not being a reliable source. Let us put it this way they are considered a mid-size company not large like GM. They try to compare themselves to large cap companies that are on the stock exchange.
TASC look at who, how, an why it was created so companies like Freedom can make it sound excellent to be on TASC. Follow the $$$ and how it was formed and who's idea it was, dig deep enough you will find info on that as well.
Dun & Bradstreet (D&B) if you look at that and ask aroundD&B is like a credit check on a company. It is like pulling up your FICO score for a company and if they have an liens posted against the company. Follow the $$$ and you can find out mistakes and why thy have placed themselves into this situation.
Please review the BBB and you will understand the company's current situation. If you plan on signing up with them let an attorney review everything and sure that they will tell you NO.
D&B is a credit report not a rating system please do a google search on what D&B is about and what they really do. It only tells you if they are able to apply for financing from a bank to get a loan--nothing more.

Warning don't fall for any of this BS!!!!

FDR has tens of thousands of clients and a hundred or so complaints. FDR's BBB complaint ration is less than that of the California Bar Association along with many top financial institutions. Frequently, BBB complaints are the result of not understanding how the FDR program works. Please contact customer service to further discuss this issue.

Pretty sure we understand how it works. We send FDR all of our money and they buy a yacht and a house in the Cayman's and we get sued, judgements and crappy credit for 7.5 years or longer. Does that about sum it up dips@!t?

Do not make the same mistake is terrible company, they
take your money, but you get nothing in return.
Scam May 28, 2009

I was promised a full refund from client services as a result of my complaint. I will post the result of that promise once it is either realized or ignored.


greg

Follow the $$$ look at TASC the "non-profit" how it was formed and who are "Chartered Members" (creators of TAS). Great tax deduction for them and try to bring regulation to the settlement industry, so they say. Look at the board members and which companies they work for will explain everything. Read your contract with them and you will understand that they are screwing with people's lives. Damn "car sales" tactics these guys are on some kind of comission structure to get that signature on that line. EDUCATION!!!

I Talked for 2 hours to their customer support. They basically want you to stop paying your credit card debt and put that into a savings account. THen default on all your card payments so that you have a "Hardship" leg to stand on. THen after 18 months of no paymens and extra fees you get to pay off the settled ammount. This will end you. This plan is for people who dont care AT ALL about their credit. I've herd that people are still going to cout over these "non payments". Event though they have a hand in settiling the Debt.
DO you home work. I have a many credit cards but they are all current. I am choosing to pay off one card at a time and roll that payment to the next card in line. Choose the high interest cards first.
Thanks for reading.

You are exactly right JakeDebt56. But here is the kicker, after 18 months of not paying, within that time your creditor will try to settle with you. Either put you in their hardship program or cut a deal with you for usually 60% of the debt in one or two lump sum. The longer you wait the lower they go until they sell it to a junk debt buyer. That's when the TROUBLE really begins.

Everything these settlement companies do for you YOU CAN DO YOURSELF for free. It's really not that hard like some want you to think. Just talk to your creditors. That's all it takes. They are mone than willing to help you out. Some money is better than no money. That's how they see it.

If you are way past the default stage use JakeDebt56 plan to get out of debt with the JDB's. Be careful though, try to get everything is writing. JDB's like to scam you out of more money if they can.

Selling you the world and lying to you in the back end in addition Freedom Debt's employees thinks people are stupid. Listen and Educate yourself about programs like this it has long term effects on your credit.

As usual FDR's client service person ran away. These guys all employ the same tactics. It's predictable and shameful the way these companies operate. Never really answering any questions just spitting propaganda.

Does this site really strike a blow to their bottom line that they have to come here and lie??????????????????