Freedom Debt Relief – How good a company is it?

I signed up with them (FDR) over a year ago. They have been so nice and pleasant to deal with, and they just sent me the MOST wonderful holiday card signed by 500 of their employees thanking me for my business. It brought tears to my eyes to see their care for me in my predicament and on the holidays. Thank god that there are people like them out there that look out for people like me that no one else will help out.

I'm still looking for those companies that the TASC threw out for misconduct. Anyone know who they are?

FDR is a respected company within the debt settlement industry. They are a member of TASC (The Association of Settlement Companies). The fact is that debt settlement is much more favorable than filing BK. They will probably settle your debts for about 42% unless you get sued, and then probably the average will be about 60%. This is a better route than filing BK becuase you will typically settle in about 3o months, depending on your balances. The credit scores will suffer now but recover much sooner than BK. The fact is that if you are in financial trouble this is a good way to resolve the debts and still have a chance at rebuilding your credit sooner. credit counseling stinks becuase it lowers your rates and overall payment, but you still payoff the entire balance and it takes forever. No one will give you credit (when needed, like a car loan) while you are in Credit Counseling. Debt Settlement does not report to the bureaus.

I've worked with this company recently, and there was something about it that just "felt wrong". Yes, I did see examples of people saving money who were enrolled in the program, but I think I saw a lot more people in the program who didn't benefit at all. Their balances were seriously increased by late fees, etc., and when FDR did settle it wasn't much of a savings when you include all the fees that you pay them.

I was fed up by their sales people "rushing" people into the program and not fully explaining how it works. In customer service, I felt we had to clean up their mess. They are behind in sending out the Cease Communications and Power of Attorney forms, and they don't tell you up front that they can't send those out to everyone. FDR operates under many different names, such as CNI, debtamerica, and many more. They have two different Welcome Packets, one for California and one for everywhere else. The management team didn't really care to help their operators on the phone, and kept coming up with the same excuse "well, they signed the contract".

I don't trust this company, and I've worked for them! Anyone can do this crap themselves. Stop paying your creditors, save up your money instead, and then take the settlement offer your creditor gives you. This is exactly what FDR does, except you have to pay them 15% in fees based on your total debt balance to do it.

I got tired of working in customer service and "cleaning up the mess" that other departments have done. No one takes responsibility or ownership on these accounts, and the poor clients are bounced around from one customer service rep to another because the employees are "not allowed" to transfer to someone else. And once the sales rep has done his job, you are not allowed to transfer an existing client back to him.

Sorry, but something doesn't feel right about FDR. And I still remember the time the manager had me stall a client on hold for 5 minutes because she had to find her "script" in order to answer questions about the California lawsuit!

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.

It looks like they are done. So again Andrew Housser is a co founder of FDR and he is an ACTIVE board member of the TASC. An organization which some here love to promote. TASC mentions nothing about all this government actions being taken against this company. This is so obvious about TASC and FDR and anyone associated, the clues, the evidence......but hey I'm just the messenger.

Oh and the names of those companies the TASC through out for misconduct please. Anyone?????????????????????

LOL....Commercial anyone.

I'm currently a client of FDR; I have been for the past 35 months. IF you ask me what I think about the "program" my answer would be the biggest mistake i've made. My initial debt was $21,000. They told me that they would settle the whole thing for about $13,000 including fees. Well, I have paid $13,580 and still have 3 more accounts pending. I did the math and I still owe them about $7,000 more. Add the numbers and at the end they money that I was supposed to save will end up in their pockets. I'm sick and tired of making payments, paying more that what I agreed. When I asked them about this situation they said that the contract was just an estimate. I told him that their estimate was way off and he had no answer for me. My credit is horrible. I'm at the bottom 7 percentile compared to the US. Before this program my credit score was decent in the low 700's. Imseriously thinking about taking them to court. They just stole MY MONEY from my hands. Listen, I'm no fake, I'm real. Noone is paying me to post this. I did it because I want to help others not to make the same mistake.

IF you want more info please email me at dj_xxx and include as subject FDR Info. I will be more than happy to assist you and stop you from making the biggest mistake of your life.Email removed for your safety..Bossy4455

I talked to them and their sales people just seemed soooo sleazy! I mean they're higher pressure than the collectors I'm trying to get away from.

I work for FDR and the settlements you speak of are not typical. We are very fortunate that we are able to obtain great settlements for our clients as you can see on our website. There are exceptions sometimes and this may have been the case. We are very committed to settling our clients debts in a short period of time for as little money as possible. If you would like to discuss your account please contact customer service.

You are not licensed to do business. Why would anyone contact you?

Give me a break.

I started the program two months ago and wished I had seen this site before I did. I called today and was informed I would get 174.00 back on my initial 1200.00 (600 a month) for processing. And nothing has been done! How do I get this back? Small claims?

I started the program two months ago and wished I had seen this site before I did. I called today and was informed I would get 174.00 back on my initial 1200.00 (600 a month) for processing. And nothing has been done! How do I get this back? Small claims?

I started the program two months ago and wished I had seen this site before I did. I called today and was informed I would get 174.00 back on my initial 1200.00 (600 a month) for processing. And nothing has been done! How do I get this back? Small claims?

I started the program two months ago and wished I had seen this site before I did. I called today and was informed I would get 174.00 back on my initial 1200.00 (600 a month) for processing. And nothing has been done! How do I get this back? Small claims?

I started the program two months ago and wished I had seen this site before I did. I called today and was informed I would get 174.00 back on my initial 1200.00 (600 a month) for processing. And nothing has been done! How do I get this back? Small claims?