Business ProfileforFreedom Debt Relief LLC

Consumer Financial Protection Bureau v Freedom Debt Relief LLC

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

 

On July 9, 2019, Freedom Debt Relief LLC and Andrew Housser, the Co-founder and Co-CEO, entered into a Stipulated Final Judgement and Order with the Consumer Financial Protection Bureau. The Assurance settles allegations that the business charged advanced fees and failed to inform consumers of their rights to funds they deposited with the company. The business also charged consumers without settling their debts as promised, charged consumers after having them negotiate their own settlements with creditors, and misleading consumers about the company’s fees and its ability to negotiate directly with all of a consumer’s creditors. Under terms of the Assurance, the business may not misrepresent, directly or indirectly, whether any present Creditor will negotiate debt settlements directly with them, mis represent their ability to negotiate or settle an Enrolled Debt, or misrepresent the circumstances in which they will charge fess. The business is prohibited from charging fees for Non-Settlement Outcomes, required to provide disclosures relating to consumer involvement in settlements and disclose to each consumer that if the consumer withdraws from the debt-relief program, the consumer is entitled to receive all funds in the Settlement Account other than funds earned by the Company. The business must pay a Judgement in the amount of $20,000,000, in order to provide restitution to affected consumers, and pay a civil money penalty of $5,000,000, of which $493,500 shall be remitted in light of the civil money penalty paid under the FDIC Consent Order. The Assurance was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law. 

 

This action is final.

New York Attorney General v Freedom Debt Relief LLC
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

On June 23, 2020, Freedom Debt Relief LLC entered into a Consent Order and Judgement with the New York Attorney General. The order settles allegations that the business violated a 2011 Settlement filed with the Office of the Attorney General, by continuing to advertise savings on its website without making the required disclosures. Under terms of the order, the business shall not represent that New York consumers have achieved or can achieve specific savings or percentage debt reductions by enrolling in Freedom Debt Relief's debt relief service program unless the business clearly and conspicuously discloses that such results are limited to a certain percentage of consumers and provide the approximate proportion of the enrolled consumers who fall within that category. The business may not represent a range of savings or percentage debt reduction unless the midpoint of the represented range reflects the experience of the majority of consumers who have enrolled in their program, and the percentage of those consumers who achieved the top of the range of specific savings or percentage debt reductions claimed is clearly and conspicuously disclosed. The business shall pay $3.6 million for restitution and for the costs of administration. The business did not pay any penalties under the order. The Assurance was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law.

This action is final.