Freedom Debt Relief - How good a company is it?

FDR has a UNSATISFACTORY rating on the BBB. Their report says "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"

Go to the BBB page and read the entire description.

FDR has a UNSATISFACTORY rating on the BBB. Their report says "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"

Go to the BBB page and read the entire description.

Anyone heard of Fast Track Debt Relief?

Anyone heard of Fast Track Debt Relief?

fdr is horrible never do business with them they ar rip off artist

whatever there promises you I can assure you your able to negotiate own your own and will save move money

whatever there promises you I can assure you your able to negotiate own your own and will save move money

sorry should state you can get a better deal on your own and save and avoid those high fees settlment companies charge

You guys who state that FDR never helped you, quick question - did they not return your calls? Did they not answer your questions? Did they not do their part?

I just finished and I have to honestly say that they are so nice and so helpful, it is like a totally different story than my experience. They settled my debts, they helped me by holding my hand through the process and they were nice.

Really? Were you in the same program I was in?

This site seems weird and not like what I experienced. Are you guys lying to people?

I work for Citi in their bankcards division. debt settlement company's, including Freedom debt relief really upset me. They misinform so many clients. While you are with a settlement company your accounts still accrue interest and fees. If you don't settle before the account is 6 months past due, the account charges off and goes to an outside agency or attorney. Also, they can promise you less than 50%, but we, or anyone else that buys the debt, are under no obligation to accept the settlement. Not to mention until a power of attorney is received, you still receive collection calls. Do your self a favor and choose a non profit debt consolidation company. debt free in 5 years or less with no charge offs.

FDR is on its way out.

I am personally using FDR right now and all of the information mentioned above was explained to me up front. I fully understood this would hit my credit, I understood they cannot negotiate any settlement until I have built up enough in my account for them to work with. I also understood that I could be issued a 1099 for charged off debt. They did address all of my concerns up front. I think whether this company is good for you or not depends on your circumstances. If I only had 20k in debt I would try to work with the company directly or cut corners and make big payments on it. My husband and I have over 100k in debt and a failed business. Bankruptcy is a reality for us if we cannot make the debt settlement work. My personal issue now is affording the monthly payment to the program and being so strapped. I want it to work and don't want a bankruptcy on my credit but I'm having second thoughts. I'm worried some of my creditors will sue me before I can get enough built up to offer a settlement and I wonder if the bankruptcy protection might be the only option for us. FDR did tell me if one of my creditors got to that point that they may negotiate to have me pay them a reduced amount directly each month but I guess I can either wait and see if that happens or just bail out now and file bankruptcy so I have that protection. If anyone had advice I'd love to hear it.

I have just started FDR. They explained everything in detail and always talk to me regarding my fears. I know they have some bad issues going on but I don't know a settlement company that doesn't because they are working with the people not the credit card agencies. Hopefully this will work otherwise I am doing bankruptcy. It is always up to the credit cards whether they will deal or not. It will take me a couple years and I hopefully won't get sued but I would think the credit card companies would want something rather than someone going through bankruptcy and they would not get a thing since I would most definately be doing Chpt. 7.

We are pulling out of our FDR agreement because they have not helped us at all. They DID NOT SETTLE ANY ACCOUNTS. We have been taken to court twice. They did not even notice that we had enough money in our account to offer a settlement with a company. They have been completely negligent and misrepresented their services. My husband and I are two intelligent people, and we were tricked by their claims, even though we researched it ahead of time. All of our accounts (4) went to law firms, which they claim never happens. We subsequently received specific percentages from them about the accounts that go to law firms, the ones they settle (and for how much), and the ones that go to litigation. DO NOT BE FOOLED. The numbers they quote you when they are trying to sell you their services are not the actual numbers. Plus, the way they compute their numbers actually distorts the true figures (we saw very specific evidence of this with our account). The best thing about this company is their marketing and sales force. If I had the money, which I clearly don't or I wouldn't be using them, I would sue them for misrepresentation.

Commercials!!! Commercials!!! Commercials!!!.....LOL.

This is what they resort to. What a shame.

disgruntled you did the right thing.

To CT above, I am not with FDR, but yes, lawsuits are a danger with any settlement program. EVEN WHEN YOU ARE SETTLING ON YOUR OWN, you may have impatient creditors that don't want to wait. I have been sued twice in my first year of the settlement process. In each case, when the summons was received, a settlement was negotiated and the lawsuits dismissed. Receiving a summons isn't the end of the world; often, it's just the collector trying to force a settlement. If you don't have enough available through your program, you can still do it on your own; sometimes the creditor will offer a payment plan that extends several months. In that case, your company should remove that account and their share of the fee for it from your program so your monthly cost will be less, freeing up some extra money to pay the settlement on your own.

We used this company. I don't recommend them! We had $100 K in debt. But they tell you to quit making payments etc. Which increases your debt substantially. Then by the time they settle, it is for a amount not much less that you originally owed. And then the kicker! You receive 1099's for 2 - 3 years on the debts that they "settled". You then owe several thousand dollars in taxes. We actually ended up paying more when all was said and done.
Run!

For those wondering about Freedom debt relief.....

Freedom Debt Relief Complaints - Lawsuit
Review all Freedom Debt Relief complaints
Freedom Debt Relief
Posted: 2008-12-04 by Batfang [send email]



Lawsuit

Complaint Rating:
Company information:
Freedom Debt Relief - Freedom Financial Network
San Mateo, California
United States
Phone: 650.393.6210
freedomdebtrelief.com

From: The Daily Journal

Debt company sued for misleading customers
By Michelle Durand

Many customers of Freedom Debt Relief actually incurred greater debt through late fees and collection lawsuits because the San Mateo-based financial services company purposely misled consumers to get their business, according to San Mateo County prosecutors.

The Consumer and Environmental Unit of the District Attorney???s Office joined with the California Department of Corporation to sue Freedom Debt Relief, LLC, Freedom Financial network, LLC and company owners Andrew Housser and Brad Stroh. The lawsuit filed Oct. 30 in San Mateo County Superior Court claims the defendants engaged in unlawful business practices, including making false or misleading statements to consumers via the Internet and telephone to induce them to buy debt reduction services. The suit also claims the company violated the state financial code by operating without a business license from the Department of Corporation.

The business, located at 1875 S. Grant St. in San Mateo, advertised having approximately $1 billion in debt under management throughout the United States. The company advertised being able to negotiate a 40 percent to 60 percent reduction in debt to unsecured creditors but, according to prosecutors, instead made some customers??? situations worse.

???Instead of their debts being settled or reduced, many of the defendants??? customers suffered increased debt because of late fees imposed by creditors, referral to collection agencies or collection lawsuits. Some customers ended up in bankruptcy, ??? according to the suit.

Prosecutors want an injunction ordering the company to follow the law, pay restitution and pay civil penalties between $2, 500 and $10, 000 for each violation.

The company???s goal, according to its Web site, is to eliminate rather than simply lower debt. The plan for those who qualify, the site explains, is a ???debt reduction program??? which involves ???affordable monthly savings obligations??? to get consumers out of debt ???in as little as 2 to 3 years.???

The founders have been profiled by numerous news organizations and were finalists for the 2006 Ernst & Young Northern California Entrepreneur of the Year award.

Consumers who believe they have been victimized should file a complaint with the District Attorney???s Consumer and Environmental Unit at (650) 363-4651.


Michelle Durand can be reached by e-mail: [email]michelle@smdailyjournal.com[/email] or by phone: (650) 344-5200 ext. 102.

Everyone is always misinformed and has bad info. And THEIR conspiracy theories of the BBB and consumers are always the truth. Their truth does not make any sense at all if you think about it. Everyone is always out to get the dept settlement companies. Maybe there is a good reason for that. Excuse, Excuse, Excuse on top of Excuse.

I'm SO sick of the lying and fallacies Perpetrated by these people. I like to clown around in this site while helping people but right now I'm so PO'ed at the complete disregard for the truth and to do what's right. I try not to take it too seriously but right now I'm in one of my moods and I can't help it.

You guys will get yours.

DO NOT use FDR. I beg you. STAY AWAY. This thread will tell you everything you need to know.

I need to let it go.

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.

FDR's BBB complaints are low in comparison to the size of their company. If you look at the BBB websites, both regional and national, their percentage of complaints is actually lower than the California State Bar Association....... My challenge with the BBB and anyone who has worked with them knows, any person, for what every reason, can simply file a complaint whether it is legit or not. I do like the fact that I see resolutions on the BBB website which means they still try to keep people happy. FDR has 20,000 plus clients and less then 200 complaints nationally, that is less then 1% complaint rate...... I am curious, I have blogged her before and made similar comments yet they always seem to be deleted....Is this a biased website or a competitor of FDR running this site?

"I am curious, I have blogged her before and made similar comments yet they always seem to be deleted....Is this a biased website or a competitor of FDR running this site?"

Because YOU are BIAS kmac. Hope that answers your question.

I would say that if you worked with a settlement company and they did not save you that much money you went through the wrong company. I was very pleased as to the results of my settlement company.

it took about 7-8 months for my first settlement by the end of that first year i cleared out 5 of my debts all in a row. they saved me more than 50% of the debts on all accounts except for 1. 1 that i decided on my own for them to stop the process I had enough money in my account and wanted it done.

Even after paying the companies, paying the settlement company, and the irs, I still was above and beyond better than what I would have origionally paid. It makes me angry to see posts like th one above stating that consolidation is the only way to go that is worth it. That is a lie and if your company doesnt work well, you chose a bad company.

The company i used got a % of what they saved me meaning they had to work harder for me. Im sure they were dissappointed my last account they recieved very little because i just wanted it to be over, but they respected my wishes.

Also I knew up front and forward about what could happend during settlement. ie, lawsuit, credit damage, harrassing calls(even though they will be reduced), etc.

And last of all getting a summons isnt as bad as you think. It is very scary the first time it happens but its not as bad as you think.

I think its awesome y'al are doing your research. I did the same thing and came across Rise Above Debt Relief. It was the only full diclosure company I came across and I could'nt find any complaints about them anywhere. In business for 5 years, thats pretty good. The guy I talked to really knew his stuff and I felt no pressure

if i'm having trouble making payments, i can understand asking for an interest reduction, but i cannot understand why i should ask a company to forgive my debt... thats just not right...

ok, so maybe its just better to file bk and they get nothing is that right? or how about say chpt 13 were they may get very little every month for the next 6 years or so? Its a tool that even the creditors love. Its better to get something now in one lump sum than to get nothing at all or very little over a long period of time.

I dont understand your thinking guest, if you think about it usually what you charged has already been paid, its the interest and fees all piled up that is making that account drag on. so believe me most of these companies are not out of out of pocket they just may be loosing a little of thier fees. or not making quite the profit that they feel they should be.

Also, bear in mind there are certain creditors out there that will not settle no matter what. If you debt settlement company cannot produce a letter that the creditor has agreed to any settlement terms then you are probably sol.

In answer to your question, I did work with them and they were good to me.

I am a current client of FDR and would not recommend them to anyone. I am only still with them because I feel I have no other choice at this point. I joined a year ago with 85k in cc debt. I am paying them 1500/month and they have settled one $6,000.00 account $4,000.00. I was sued by one of my creditors and they told me they could not settle because I did not have enough money in my account. i had paid them over $14,000.000 but it all went to fees. I am now paying a judgement Payment every month that was "worked out" by FDR's legal department. This includes all late fees, attorney and court costs that added up to much more than the original debt. This is on top of the payment I am still making to FDR. I am now being sued by another creditor and getting the same scripted answers from FDR. I feel like I made a huge mistake and now have no other options but to stick with them.

Holy crap!!!! That's a lot of money wasted. If you paid $14,000 to them they took half of it. So you had $7000 to settle with. One account down but now you have $1000 or $2000 left over. Sorry to hear that. Really.

Do you know that they are not licensed to do business anywhere and they are being sued by numerous states?

Try bankruptcy.

I did not realize they were being sued and not licensed. When I signed up they seemed like a reputable company. I honestly dont know what I can do now. I really dont want to file bankruptcy and lose everything I own. My credit mess began when we made a few late payments and they raised our interest rates to the max legal rate. Our minimum payments more than doubled and we couldnt keep up. The credit card companys wouldnt work with us so we went the debt settlement route out of desperation. What a mistake. Prior to this I had a 760 credit rating.

Well in bankruptcy you don't lose everything. You list what bills you want to be included in the bankruptcy and which ones you don't. It's that simple. Yeah your Credit score will take a hit but in a few years you have a clean slate. Safe and legal.

If you can pay $1500 a month pay that directly to the credit card companies. Debt Settlement is for people who are way into default.

But one thing is for sure. Stop paying FDR. They are ripping you off.

Think about bankruptcy though. Look into it and see if it is right for you.

I am with this company now.. I just received a 1099 from a company they pay off.. Now i owe income tax on the amount the Freedom relief pay them off with... They didn't inform me of this part of it... Now I guess I will owe IRS, because I already mail in income tax

Cottonleggs , You need to speak to a tax adviser because you might be considered insolvent. There is a IRS form 982 that might exempt you from this tax.

I have about $50,000 in cc debt. I've spoken with FDR and credit counseling. I would like to find out would would be my best bet. Of course, we are all in this situation, but I would really appreciate anyone's input on this. Credit counseling was just too much for me to afford. Any help would be appreciated.

joestl, have you read this whole post?? and you still are interested in fdr? I would seriously think about this some more. there is more complaints on this company on this posting than i would be confortable with. But hey, its your money.

yes, i have read the entire post, some parts more than once. i understand what you are saying and i'm sure i'm preaching to the choir here, but this is pretty close to a life changing decision. i've heard so many bad things not only about fdr, but also about debt relief in general. then there is the stigma surrounding bankruptcy. i just want a hug, i guess. :(

what is the best option, not for me, but in general. can the court or creditors take my house or car in a bankruptcy? i have heard of people, not only in this post, saying that they have had the creditors come after them in court.

The word is right, you don't have the Freedom to use credit cards and then whine about the fact that you have them. i am working with freedom and most what is written here is "Fear" and Stupidity. I owe 40K plus and in 42 months the interest is included on what you pay. At 42 payments they give you clear credit card company's. You screw up your credit to go to them, get a deal and never use credit cards again. They were available to use their money without interest if you used it correctly. Lost Obama has said, the world is more stupid than anything. Get smart and get out of debt in 42 months. Quit Whining!

I will give you a hug!!!! I know its tough and nobody is WHINING GUEST! Making a decision about your financial situation is very important. I havent told anyone that settlement is not the way to go. I myself have used settlement and used a company.

Im just concerned about this particular company.

Im not real familiar with bankruptcy but what i do understand is chapter 13 you keep your assets but have to pay some of it back in payments and you must be timely or your creditors can come after you again. Chapter 7 if eligable you get wiped clean but you loose your stuff. I could be wrong though so take this with a grain of salt. like i said i dont know much about bk.

42 months is alot of time for settlement if you ask me, your chances of getting sued are pretty high. at the longest 36 months. I chose 2 years wich worked pretty well.

either way you must do something Time is pretty important so good luck!

I have been in contact with this group. Hoping to get something saying they are reputable. I found under California Department of Corporations a DESIST AND REFRAIN ORDER for violations of 4 diffrent sections. This has me mistified on how they are staying in business. This is dated May 29, 2008. Yet I see some publications dated November the same year. Can anyone help me to understand if this has been clarified? Thanx

I'm in one of my serious moods so here goes:

It amazes me that a company that has numerous complaints with the BBB, States after them for corruption and fraud and a horrible reputation in general can be considered for USE in any way. And to top it off does not have a license to do business in ANY state, as well as, has numerous businesses with the SAME address. There is no question as to the guilt of this company and anyone affiliated.

One can only wonder if some of these posts are legit. But hey what do I know?

First let me say I have over 15 years in the debt consolodation & settlemtn industry. ANY company that promises you ANYTHING other than they will do thier best to get you a low settlement is LYING to you. NO creditor has ever had a policy where they will automatically take 50% or 40% or whatever they are promising you... and if they do... CALL THEM YOURSELF and save the commissions & fees assiciated with dealing with a settlement/consolodation company.
However I can tell you from experience that TAX settlement/relief agencies are some of the WORST liars out there. NOTHING and I mean NOTHING will force the U.S. Goverment and/or IRS into a settlement. It depends on a LOT of circumstances, and to be honest, if the agent handling your case for the IRS has had a bad day... so sorry your not getting approved.

I have had personal dealings with Freedon Tax/Debt relief, and they are a very unscrupulous company. They have SO many restrictions in thier agreements that they can "drop you" for about anything and you dont get a cent back, (I am sitting here reading one of thier "tax settlement sets of paperwork as I type).

They sent one client of mine paperwork to sign and send back to them prior to a certain date....funny thing is they didnt send it out untill 4 days AFTER that date. The client signed and sent the paperwork back with the fee asked for.... they kept all the money (including this "additional fee"), and told them because the paperwork was NOT returned "in a timely manner" they were dropping them.

NOW in response to the posting on both this site and Ripp Off Report dot com, The client WAS from the Asheville, NC area.

FDR (Freedom Debt Relief) lies, cheats and steals from people who are already desperately finanacially strapped. DONT DO BUSINESS WITH THEM. (llok them up on the BBB, Oakland CA. website.... they have an "F" rating.... you DONT get that JUSt from having complaints.... you get that from having MANY Substantiated Complaints..... Let em know if I can be of ANY more help...... Signed - Professional Debt Settler

I have used them and it has taken forever, now i am with work and they still demand a payment. How can I get what I have in the account back and cancel.

Thanks

Professional Debt Settler it seems someone put a link to your response that states the TASC's position on the BBB ratings of debt settlement companies. Here it is folks:

Freedom Debt relief on the BBB: Please read CAREFULLY

F Rating BECAUSE

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, Advertsing requirements and excessive upfront fees. The case is currently pending.

AND This what the TASC has to say about them:

Freedom Debt Relief
1875 S. Grant St. # 400
San Mateo, CA 94402
650-571-0961

Freedom Debt Relief is an accredited member of The Association of Settlement Companies [TASC]. This company has demonstrated the required business practices and standards required by TASC to display the TASC seal. To find out more about TASC, please visit us

Notice ANYTHING WRONG HERE?????? So let me get this straight. We are to believe that the BBB is lying about the government actions and the TASC is right? None of this is true? FDR has an F for a reason. The TASC has it WRONG. Why isn't FDR kicked out of the TASC? Why is Housser still on the board of the TASC? Does it have to be spelled out for everyone? STOP deluding yourselves. The TASC is NOT your friend. WE ARE, THE PEOPLE WHO COMPLAIN. At least they are not at the present time. Maybe in the future it will work out but right now IT'S NOT. It's a useless protection at the present time. Means NOTHING. Check out what I had to say about the TASC on the thread Is the TASC a Scam Organization. Interesting FACTS there.

C'mon people stop closing your eyes here.......WAKE UP!!!!!!!!!!!!

FDR has tens of thousands of clients and a hundred or so complaints. FDR's BBB complaint ratio 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. Also, the State of California, Department of Corporations has asserted that FDR should be classified as a "prorate" which is a statutory term commonly applied to credit counseling agencies that receive and control consumer funds. FDR disagrees with the Department of Corporations' interpretation and hope to resolve our differences without resorting to a law suit. FDR believes this lawsuit affects only California-based customers, and then if only FDR cannot reach an agreement with the Department of Corporations.
I hope this clears up some of the confusion for you.

Does DS stand for Dip Sh!t? Because that's what you must think we are. FDR is a scam pure and simple. You're real good at the BS posts by "Guest" that "FDR helped me so much....blah blah blah" but nothing from a bonafide real human. Someday soon, God, Allah, Buddha, Vishnu et al willing, you'll find your happy a$$e$ in a nice pleasant federal penitentiary. Bubba gonna take good care of ya!





Edited for content - ND

:lol: Nascar , dude thats pretty graphic and a bit over the top :lol:

OH MY GOD!!!VISUAL!!!

I toned it down a bit....sorry :oops:

honestly i thought it was hilarious!