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Freedom Debt Relief - How good a company is it?

Submitted by on Tue, 10/09/2007 - 13:20
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I have been corresponding with them (freedomdebtrelief.com) and talking with a guy of Freedom Debt Relief by phone and have not yet entered into any agreement but today I decided to do some homework and found that their CA Corp. status is "suspended" and that is a HUGE red flag for me. I'm still waiting for more info on that but I also checked the BBB and there have been 67 complaints so far against Freedom Debt Relief scam that I can find...and that's through a regional BBB site. Who knows if there are more reviews elsewhere. It all sounded very good, and on the "up and up" but what do I do now? I have about $20,000 in debt and they agreed to settle my debt for about $11,000 total out of pocket. They charge but I'm still better off with their numbers. Problem is, I'm very afraid of doing business with anyone in the debt settlement industry having such complaints. I need help very soon though! So far I'm not late on any of my bills but it's not far off. Please suggest me on Freedom Debt Relief reviews.
[samebox:0d75c39e1c="Vikas"]Response from Freedom Debt Relief Managing Partner - http://www.debtconsolidationcare.com/forums/attachments//freedom_debt_relief_955.pdf[/samebox:0d75c39e1c]


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.


Submitted by on Tue, 06/02/2009 - 07:10

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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.


Submitted by on Tue, 06/02/2009 - 09:17

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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??????????????????


Submitted by on Thu, 06/04/2009 - 04:06

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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??????????????????


Submitted by on Thu, 06/04/2009 - 04:07

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Ok I contacted Freedom Debt relief about my Card Balances @ $53,000. They advised me 35 months @ $900 month. Now I was made aware of the 15% (10% service, 5% retainer) fee that was included in my settlement and aslo advised that the 1st 4 months would be about $670 going to them and the next 15 months after $350 gooint to them. This total is over $8000. being curious and simple math told me they have $23000 to settle the debts. Now I stopped paying my creditors and the number have inflated from interest, late payments, etc. their was not much accumulation during these 19 months. I acumulated $7000 over that period. Now heres the catch. I was sued by 2 companies and got summons for court and everything, went to court(waste of time) well with one of them they gave lump sum of $2500 and $200 month to debt paid off..they will renegotiate later, 2nd company was settled for 70%..best freedom can do..now to settle I have to come up with an additional $2225 plus my funds in account to settle. they advised to equal payments of $1112.50..well they havent taken 1 out yet, i assume they are waiting to be contacted by Bank of America reps. Now be aware that you may have to come up with mor additional funds to settle quickly. lucky i was able to come up with it. But consider that it all boils down to what they can settle for. Everything Ive read states 35-40% settlement on blances..also note balances are inflated since you started.


Submitted by on Sat, 06/06/2009 - 22:04

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A class action was filed against Freedom Debt Relief, LLC, and Freedom Financial Network, LLC, on Feb 27, 2009, on behalf of hundreds of Washington families, claiming that these California companies illegally charged excessive fees and misrepresented their ability to help Washington families who were experiencing financial difficulties.

Freedom Debt Relief and Freedom Financial Network, according to the Complaint, deceptively represent that they can leave families debt free in 12-36 months, and reduce their debts to as little as 50% of that owed. Defendants also violate Washington statutes designed to protect indebted individuals, according to the Complaint, by, among other things, charging indebted families excessive fees, while doing little or nothing to assist families in meeting their debt obligations.

The suit seeks reimbursement of all fees paid to the defendants, as well as punitive damages for violation of Washington???s Consumer Protection laws. This suit also seeks a court injunction prohibiting the defendants from engaging in wrongful business practices.

To find out more about this class action or to speak with an attorney about illegal debt adjustment practices, visit our website www.thescottlawgroup.com.


Submitted by rachelescott on Tue, 06/09/2009 - 14:42

rachelescott

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However by doing enchanced research for my problem i found Deleted - ND to work out very good in my favor. If you have substantial debt and need releif I would recommend you over to this company. :arrow: go to Deleted - ND :D


Solicitation Deleted - ND


Submitted by on Thu, 06/11/2009 - 09:39

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Just wanted to say that I am amazed at all the people who have not had luck with this program. I was on it for 3 years and the company did just what they said ~ negotiated debt down drastically. As for the calls from bill collectors, I just turned the ringer off on my phone and turned the volume down on the answering machine to avoid any more unwanted stress while working towards getting back on my feet. I hope more people who have had success in becoming debt-free will post comments of encouragement, because it is such a weight off your shoulders to be rid of debt that would take a life-time to pay off in the normal manner.
Good luck to everyone ~ if I can do it with a debt relief program, anyone who is willing to buckle down and make some sacrifices can do it,too! It is well worth it. Taught me a valuable lesson as far as using credit cards wisely!


Submitted by kathibrockman on Sun, 06/14/2009 - 11:09

kathibrockman

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My wife and I, this is hard to swallow, have $130K in credit card debt and we are barely surviving as you would imagine. We have a house in Redondo Beach that's value is decline and we have 3 kids under 4 with another on the way in January. I just got off the phone with FDR and hey said they could do 46 months with a monthly payment of $1,700. That would help out temendously, but I was told at the end of the conversation to stop making payments to our 17 creditors and start accruing late payments as she said the 40% would be no problem considering our financial situation. Can someone guide us with this is give reputable company. :(


Submitted by on Tue, 06/23/2009 - 14:23

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Whoever posted this is an idiot. Anyone that can read moreover comprehend what they read knows that in California state law a ???pro-rater??? or ???bill payer??? is referring to Consumer Credit Counseling, that is not what debt settlement is. That is what the dispute with California is all about. Fools like you should not have access to a computer to spread you ignorance. I pity people like you that have no idea on what is going on around you, maybe you should go back to elementary and finish what you started. Sorry you didn???t get that last sentence, I wouldn???t expect you to. MORON.


Submitted by on Fri, 06/26/2009 - 23:01

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Guest,

Thats a rather abusive post. Anyway...

The pro-rater law is not just specifically directed at CCCS companies and does affect the settlement industry. CA, through its enforcement of this law a few years ago, had a huge impact on the industry. It was this action, more than anything else in my opinion, that gave a ton of market share to Boulder and Noteworld.

Interpreting your post to imply that there is remaining grey area on this topic, where a target of enforcement action could find a defensible position, would be accurate.


Mileage may vary


Submitted by on Sat, 06/27/2009 - 08:48

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My accounts have been with FDR for 19 months now..I have 5 creditors to pay and 2 have taken me to court and one has settled for $4850 on $12000 debt a 60% reduction..however my credit has sagged but I am more concerned about getting out of debt. Yes i know that this forgiven income can be taxed..but in the long run it is probably better anyway. the 2 that have taken me to court on a summons.1 is being paid on full amount and the other was negotiated to 70%. This was to avoid having leins or wage garnishments


Submitted by on Sat, 06/27/2009 - 20:44

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I've been with them for about 8 months. I have 5 credit cards with about $25k in debt. one account was settled for about 40%. one company filed suit and took me to court. i had to fill out an "Answer" to the court. I was put in touch with FDR's legal resolution team. they couldn't help me "officially" because they are not lawyers. I lost the case and now I'm being garnished 30% of my take home pay. I can't even pay my mortgage now. my credit is ruined, and i can't file bankruptcy because they say i make too much money - even though i dont have a dime to spare.


Submitted by on Tue, 06/30/2009 - 14:08

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I went with Freedom Debt for the last 5 years and they settled my $50,000 debt for about $24,000 including their fees. I am for the most part happy with their service, and finally finished, debt free. There are some things that people who enter this program should know, and if you read their documents it is disclosed.
1. You stop making payments to your creditors.
2. Your credit is destroyed for a few years, but it was a great way to force us to spend only what we could afford.
3. after a few months, the creditors write off your debt and sell it to debt collection companies for pennies on the dollar.
4. The collectors start calling you all the time, so you refer them to freedom debt and then stop taking their calls.
5. You will get summonses in the mail, 95 percent of them are fake, FDR will advise you what to do about them. With 16 debts, 3 out of about 20 of the summonses were real and my attorney filed answers to them, after my attorney filed them, 2 of them sold the debts to another collection company. One played hardball, Cohen & Slamowitz for Discover Card - we paid them off the full balance separate of FDR, they would not deal with FDR.
6. When your draft account accumulates enough cash, FDR will make an offer to one of the creditors to settle - anywhere from 25 to 40%, if they accept, it is paid and the debt settled, if not they make them wait a few more months then they usually settle for less.
7. You need to check out the collectors that call or mail demands to you - I use BuddHibbs-dot-com. Most of them are bluffing when they threaten legal action and will sell your debt the instant you put up the slightest of a fight - DON'T LET THEM INTIMIDATE YOU. A lot of them violate the Fair Credit Collection laws and will stop bugging you real quick when you tell them you are recording all of your phone calls.
8. You will spend a little on attorney filing fees, I was lucky and work for an attorney, so I got it for free.
9. You need to keep in constant contact with FDR. We had a real good settlement for our final debt, and accumulated enough to pay it off, then found out that the creditor never finished the deal and sold the debt. FDR was busy and neglected to inform me. When I made the final payment, I called them and they said it was not settled. FDR worked with me and I insisted they play hardball with the creditor, and the creditor finally caved and settled for slightly more than the original deal, 12,000 debt settled for 33%. I just had to dig up $500 because they the deal was that I had to pay that day instead of stretching out over a couple months. The woman who forgot to inform me that the original deal fell through called me several times to apologize and went out of her way to facilitate the final settlement. FDR people all seem to mean well, the just get very busy at times.

My impression over 5 years is that they are an honest company, but they just get swamped with work occasionally.

If I hadn't used them, I would be still making minimum payments and maybe knocked 5% or less off the debt over 5 years.


Submitted by on Thu, 07/02/2009 - 21:20

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Hello,
I am very familiar with Freedom Debt Relief and I can tell you that this is a very good company and they will settle your debt as low as possible and also provide excellent customer service. I've graduated from their program and saved over 50K and I am very pleased with this company. This is a big company and any big company will have some complaints no matter how good they are. I have also referred my family and friends to this company and their experience have also been extremely positive! There are many shady companies out there and trust me...I've done plenty of research. Freedom Debt Relief is the best of the best!!! Good luck!


Submitted by on Wed, 07/08/2009 - 20:28

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I don't know why you guys are so negative and complaining about Freedom Debt Relief. Everyone I've dealt with there have been extremely professional and helpful. I've just completed their program and they saved me over $26,000 and I was done in 26 months! They literally saved my life and got me back on my feet!


Submitted by on Wed, 07/08/2009 - 20:33

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i went into freedom debt relief with the understanding that they would be able to make an agreement with my debtor (i only had one for $20,000) for a lessor amount. i had to mail in payments of almost $400 a month. the first 5 months was for their fee and then the rest went into a "savings" where i was collecting this money so then they'd go back to them after a certain amount was accumulated. however, when the debtor started contacting me....freedom debt relief did nothing. then it went to an attorney and now i'm being hit with a civil law suit. i ended my relationship with fdr and got back about $1000 but i paid out a whole lot more for no help. they said that since they were based in california there was nothing they could do in another state. they could consult me but that's it. i am now looking into bankruptcy. i'm out about $6,000. STAY AWAY FROM FREEDOM DEBT RELIEF


Submitted by on Fri, 07/10/2009 - 12:48

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Ok I had to get on here I hear people saying FDR does not work. Well I was in about 73k in debt. We are about to wrap up the program. This company was my last hope. They have been great through the whole process. I just ignored the calls from Creditors they dont give a damn about you. But this company actually does care about the debt and they do a great job. Just because some of you gave in to Credit card company lies and deceitful tactics does not give you the right to call this a fraud.... FDR does a great job.... THANK YOU FDR for your hard work and read the comments that are positive because they are true.


Submitted by on Mon, 07/13/2009 - 14:11

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Its funny how so many people are defending this company. Like all of their customers search the internet for their name and find threads like this and feel compelled to post.....bad attempt guys, obviously these customers singing their praises are the same reps of FDR and they all know how the company works internally..lol

These guys get on average 3k in fees for something you can do yourself. and they collect the fee upfront because they know only 11% of people actually get help, the rest get robbed for 3k and are deeper in debt than b4

A company of their size, probably makes the owners 4-8 million each a year from charging you fees. Look at one of their houses [COLOR=Red][removed][/COLOR]
I wonder how many of you paid for the pool[samebox="Vikas"]Home address removed as per policy posted at http://www.ourcommunitypower.com/vikas/how-to-respond-to-information-posted-about-you-or-your-company-on-ourcommunitypowercom-forums/[/samebox]


Submitted by on Tue, 07/14/2009 - 20:47

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Can anyone give me an update on this company am thinking about using them but am not sure, thank you


Submitted by on Wed, 07/15/2009 - 10:14

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Hey lawn1016. It seems you are slamming a reputable company and trying to promote your own product. Why don't you do some real research. What debt settlement product do you promote? It's obvious you are mud slinging.


Submitted by on Thu, 07/16/2009 - 08:25

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as an exemployee of one of the largest (unnamed) debt settlement firms, i will tell you that many of the positive posts on here from "happy clients" are actually from paid employees (sorry guys).

debt settlement is a good option, outside of using one of these agencies. check out mariedanielservices.com/industry_chatter.html.


Submitted by on Fri, 07/17/2009 - 08:49

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One thing that these debt consolidators do not tell you that you have to pay taxes on the amount forgiven.
Let's use an example ~ you have $ 20,000 in debt settled for $ 10,000. You will owe taxes on this $ 10,000 not paid. The bank, finance company..etc will issue you a 1099-C ~ C=cancellation of debt and send to the IRS.
By the time you pay these fools and taxes ~ YOU DO NOT SAVE ANYTHING and your credit is ruined.
I deal with these individuals all the time.
If you need more information [email]brucetreiter@hotmail.com[/email]. I am an accountant and I am more than willing to steer anyone in the right direction free! I fight these bottom feeders all the time.


Submitted by on Fri, 07/17/2009 - 16:58

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I signed up with Freedom back in January (and I'll be happy to provide anyone a screenshot of my client page for those that I'm sure will say I'm a plant from what I read). Someone I referred to them told me about this page and I can't believe some of the stuff people are writing on here.

My experience so far has been very positive - I got my first settlement from Bank of America two weeks ago for what ended up being 28% of the original balance from when I enrolled.

I read that desist and refrain order, and looked into depth into it. It says they are ordered to desist and refrain from acting as a bill-payer or prorater, which from my research is what consumer credit counselors do, not settlement companies, and therefore they can still operate in a settlement capacity there. I'm a research junkie. When I signed up with them they had an A rating on the BBB. How does a company go from being the best rating to the worst overnight? My bigger concern from reading that is more about how the BBB rates companies than Freedom's credibility.

Do your own research if you want, but for anyone thats interested let me know your email and I'll email you all the links I have found in my research.

I do notice a theme from almost all of the complaints here - they are either plugging another company, or they dropped out of the program before their term was done and blame Freedom even though they didn't give them time to finish settling their accounts. For those that got sued.. I hear that can happen with any settlement company unfortunately.. and after reading all this I am a little nervous about that. They did tell me that was a possibility, although not a high risk for people that are current when they sign up that don't have aggressive creditors. Here's hoping I'm not one of them. If anything changes with my experience I will let you all know here. Good luck all.


Submitted by on Fri, 07/17/2009 - 23:12

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Mark2009, glad it's working out for you! in fact, for some, using these companies really can work out. for MANY, they end up hurt. i worked there, know the drill, heard the sob stories and know that the sales reps are very aware of what they are selling. many of them hate it.

would love an update in a year or two.

you do seem strangely knowledgable for an average consumer. i'd take you up on the offer of the screenshot and have it validated, but honestly, not that concerned to put all that effort in it. if you're a real client and it's working, i'm happy for you. if you're an employee fronting as a client, shame...

i wish you well and really hope you're able to stick it all the way through without having to deal with a lawsuit or enduring any harassment. some people just can't take that.

P.S. Do you think you needed them, or any debt settlement company, to get that negotiated settlement with BofA? Hmm.. wonder how much that cost you in fees?

Oh and one other thing. If my memory serves me correctly... THEY DIDN'T HAVE AN A RATING IN JANUARY. They haven't had an A rating in a loooong time.


Submitted by on Fri, 07/17/2009 - 23:30

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know this you may have to pay taxes on amount forgiven but its not as much as you think..example you save $10000 that is forgiven credit card debt. you may have to pay on average (15%-most people) $1500 and its clear and gone


Submitted by on Sat, 07/18/2009 - 21:37

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i deal with them and so far i have receipts from all the cards that they paid off. i haven't had any problems.


Submitted by on Fri, 07/31/2009 - 10:11

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I Hope they are a Reputable company. You guys are saying they have 67 or 69 complaints against them. But this is out of Thousands of clients. You Cannot satisfy everyone, someone will always have a bad experience with something. Freedom debt solution has been in buisness since 2002 one of the longest in buisess I have seen. They told me my credit is going to be effected. But it would be anyway none of the credit card companys would except the $50.00 a month I was sending them. My balances were going up like crazy. I had to do something. I hope and PRAY that it works. I just had a Newborn and I need to get out of debt. There must be some happy people out there using the program. Maybe some graduates of the program could tell thier story. I would fell better hearing some. Well have a GREAT day guys.


Submitted by on Sat, 08/08/2009 - 07:31

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I recently withdrew from FDR due to the fact that I am being sued by one of my creditors and if you read your contract it states, "they (FDR) will not give any legal advice". So when the creditors hire an attorney and the proceed to file court papers, YOU will end up with a wage garnishment.


Submitted by on Thu, 08/13/2009 - 20:01

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I have a large amount of Medical debt and a few credit cards. Total is 75k. Freedom has settled 3 of my debts and has stopped all creditor calls. They return my Emails immediately and call me the next day to address any issues. I have only been with them 19 months and feel that in the grand sceam they have done a great job! They constantly try and settle accounts but are subject to the amount of money i have in my account. they never ask me for more money unless the settlement offer is reasonable and i have the extra cash. they seem to be making great decisions on my behalf. I am pleased and would recomend them to anyone who asked me. Granted i still have a ways to go but i like what i see and they seem very eager to support my cause.


Submitted by on Tue, 08/18/2009 - 22:10

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I am just like a lot of Americans who, I'm sure, have recieved the letter from the CC agency that begins "due to the economy".

Over the past nine months, my CC interests rates have increased, on average, two fold. In some instances the interest rates have tripled. In addition, my limits have been slashed and my monthly payments have increased from 2% of balance to 5%. Ouch!!!

I have never been "late" or "over the limit" ~ but I'm being treated badly.

I looked to FDR for, well, relief....

First RED FLAG ~ In response to my questions, I am told "I can tell you've done your homework. You are smarter than the average consumer". NOT....

Second RED FLAG ~ The representative emailed the contrat to me at 4:45PM with a note "if you have this back to me by 6:00PM you will not have to pay any of your CC accounts now due"

third and final RED FLAG ~ THE FINE PRINT. PLEASE READ, READ, AND RE-READ THE CONTRACT.

Section 10. Miscellaneous

Complete Agreement: Modification & Amendment:

THIS AGREEMENT REPRESENTS OUR COMPLETE AND EXCLUSIVE STATE OF OUR MUTUAL UNDERSTANDINGS AND SUPERCEDES ALL PREVIOUS WRITTEN AND ORAL AGREEMENTS AND COMMUNICATIONS RELATING TO THE PROVISION OF ANY SERVICE(S). OTHER THAN AS SET FORTH HEREIN, THIS AGREEMENT MAY ONLY BE MODIFIED OR AMENDED BY A WRITING SIGNED BY BOTH OF US, PROVIDED, HOWEVER THAT WE MAY CHANGE ANY TERM OF THIS AGREEMENT, OR ADD ANY ADDITIONAL TERM TO THIS AGREEMENT, BY PROVIDING YOU WITH FIFTEEN (15) DAYS' ADVANCE WRITTEN NOTICE OF SUCH CHANGE. IF YOU DECLINE TO ACCEPT SUCH CHANGE, YOUR SOLE AND EXCLUSIVE REMENDY WILL BE TO TERINATE THIS AGREEMENT AND WITHDRAW FORM OUR DEBT RESOLUTION PROGRAM.

I'm no genius ~ but my take is that FDR can "say" anything it wants and not be held liable. In addtion and at anytime, it can change the terms of your contact with a fifteen day written notice.

The last I looked ~ a CONTRACT WAS A CONTRACT AND COULD NOT BE CHANGED.

As for me, I will deal with what was delt ~ I'm NOT giving anyone money to get out of debt. Hmm...pay to get out of debt. Kind of an ~ oxymoron.

this has NOT been a paid advertisement.


Submitted by on Thu, 08/27/2009 - 21:10

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There isn't anything a debt settlement companies do that you can't do yourself. If they can get a settlement - like the above example of $11,000/8000 on $22,000 of debt - then you certainly can. It's not magic. Want your interest rate reduced? Ask them to reduce it...They willl do it. If you can pay a lump sum all the better as it improves YOUR leverage. Negotiate Hard. Have patience. You may have to talk to different people at the creditor to find someone who is willing to work with you in a professional and courteous manner. Negotiate hard. Get everything in writing....It's relatively simple to do.


Submitted by on Tue, 09/01/2009 - 00:59

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I recently dropped out of FDR and would give ANYTHING to have the 3K I paid them back. They literally did nothing for that money. They energetically signed me up - I am still in disbelief that I am in this situation, but I was in financial crisis mode and panicking and they made me feel more secure - then passively collected their hefty fees for months. Okay, fine. But then, I asked them to start negotiating with a collector on one of my accounts. The collector was driving me nuts and I had saved up sufficient funds to settle. Twice I emailed them asking whether they had made contact with the collector. I also called them about it. Every time, I got the same response, to the effect of: "our records show your account is in active negotiation. We could say your account will be settled soon, but we cannot promise because it depends on your creditors". Then, a month later, I unilaterally received from the collector a written offer right in the range I had asked them to settle in. I was able to call the collector and knock that offer down another 10% or so.

Bottom line: they are not doing anything you can't do yourself. They don't let you talk to their negotiators, and you can never get a straight answer regarding what is happening with your accounts. Unless you really like to feel out of control, I would not recommend them.


Submitted by estelle_smiles on Tue, 09/15/2009 - 19:53

estelle_smiles

( Posts: 11 | Credits: )


i have paid fdr 2670$ and the so called account you have to set up only has 322$ in it. they are scam artist. no wonder it takes years to pay it all off. now im way worse off than i was. now bankrupsty is the only way, thanks alot you a******.


Submitted by on Thu, 09/17/2009 - 22:36

( Posts: 202330 | Credits: )


Hello Unregistered,

This site doesn't represent FDR. So, you must take your disputes to them. Since they have taken fees from you to resolve your problems, they must offer adequate services against it. Report them to FTC and State Attorney General. You must get back the fees that you have paid them towards their services.


Submitted by phoenix on Fri, 09/18/2009 - 01:57

phoenix

( Posts: 1445 | Credits: )


If you are in debt, save your money to either file bankruptcy, or see if you can't reach a settlement with your creditor. WE have been with FDR for about a year now and they have done barely a thing for us. Yes, they did settle one of our credit cards for less than we owed, but we are now being sued by another because they are not getting their money. When I called about this, there is a person who is suppose to be making this particular account a "priority" and was suppose to call me back within two weeks, so far the only thing i've heard from them is a list of fees they will charge to talk to us about it.
This week we are seeking to file bankruptcy, and FDR has been notified they will not be getting thier money, it is paying to hire a lawyer to handle the mess that is out of control now.
Save yourself the hassle later, and don't go through these people.
BTW one thing they don't tell you about until later, is that you may be liable for taxes on the portion that is written off when a company settles. It is considered income for you. Something else I have to look forward to come tax season.


Submitted by on Wed, 09/30/2009 - 16:41

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Find out first what negative consequences you will have before doing debt settlements with any debt settlement company. Among them are tax consequences, damages to your credit rating, and possible judgements against you followed by wage garnishments. Creditors can alway get a judgement against you and recover all their money through involuntary wage attachments. Debt mangement plans ususally accomplish the opposite.


Submitted by on Wed, 09/30/2009 - 20:09

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I was employed with freedom debt for a year aka freedom financial network the only way it will actually help is if your monthly draft into the company is a substanical amount lets put it like this theyre all liars! the sales people make commission off of your first few months- it doesnt even go into the program it goes into whoever sold you- right into their pocket after your "initial retainer" the dept i worked in settlment negotiations- we correspond w/ the collection agencies and some attorneys all negotiaters are greedy- basically we make money off of how many accounts we settle per month so at minimum youre looking at 50% mind you your debts will continue to accrue interest and assess penalties fees collection costs and attorney fees- it is a SCAM EVERYONE THERE IS GREEDY they will tell you its the best thing since sliced bread - all a lie for your money they guarantee debt free in 3 yrs but its not not true people with medical u can forget it we never got good settlements besides meds not that big a deal- chase wont even work with them because of law suits, they outsource chase to a different debt settlment co. alot of stuff goes to LARU legal account resolution unit where basically ur getting sued and end up paying more than 100% ur debt trust me i worked here take your business elsewhere or just work out payment with creditors and pay one less hungry mouth HOPE THIS HELPS!


Submitted by on Mon, 10/05/2009 - 13:17

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It is to bad, that these companys are allowed to prey on those of us who are already hurting. Even as mad as I am right now about the whole situation we now find ourseleves in remember the old addage about 'buyer beware." I bought into their stuff and now we are trying to fix it the only way we can and who knows how we will come out in that. It is a situations with live and learn.
However as I said previously save your money, negotiate a settlement yourself if you can, and if you think you can't get it worked out save the money to hire a bankruptcy attorney who will truely be working in your best intrest. We haven't even offically hired ours yet and he is already working on our behalf.
Good luck everyone.


Submitted by on Mon, 10/05/2009 - 13:41

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If you really want to know what the deal is with debt settlement companies, how they rank, who to trust, what to look out for. I would be happy to do my best to assist in making an informed, educated decision.
If you would like to find out IF debt settlement is RIGHT for you, drop me an email at [email]heath_macie@hotmail.com[/email].
I respond personally to any requests.


Submitted by on Mon, 10/05/2009 - 16:07

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Quote:

Originally Posted by Anonymous
BTW one thing they don't tell you about until later, is that you may be liable for taxes on the portion that is written off when a company settles.

Why do people find it so hard to read something before signing it, either electronically or physically?

From Section 7 of the contract (which just so happens to appear about 1 line above your first initial spot):

"Although CNI does not give tax advice, Client understands that Creditors may notify the IRS of any debt forgiveness which may be taxable to Client."


Submitted by on Mon, 10/19/2009 - 17:03

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