It alleged that Freedom’s statements concerning the circumstances when consumers would be charged fees were false or misleading, were material to consumers’ decisions to enroll in Freedom’s debt-settlement program, and constituted "deceptive acts and practices, in violation of §§ 1031(a) and 1036(a)(1)(B) of the CFPA. The lawsuit also alleged that Freedom Debt Relief "violated the Consumer Financial Protection Act of 2010 by charging consumers without settling their debts as promised, charging 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." "Freedom claimed that once there were sufficient funds in those accounts to make settlement offers to consumers’ creditors, Freedom would negotiate with the creditors to persuade them to accept less than the amounts actually owed," the complaint alleged. In November 2017, the CFPB had filed a lawsuit against Freedom Debt Relief alleging that the company had violated the Telemarketing Sales Rule by charging advance fees and failing to inform consumers of their rights to the funds they deposited with the company.Īccording to the amended complaint shared by the CFPB, Freedom required consumers enrolled in its debt-settlement program to deposit funds into dedicated accounts with an FDIC-insured bank. We will cover all of that and more in this article. The reason is that Freedom Debt Relief negotiates debt when the credit is behind, thus affecting your credit score. The CFPB said it would remit $493,500 of the $5 million civil "penalty it assessed in light of the penalty that the company was ordered to pay the FDIC." Home Debt Can Freedom Debt Relief Ruin Your Credit Yes, joining the Freedom Debt Relief program can hurt your credit score. In a statement, the CFPB said that the nation's largest debt relief service provider has also agreed to a consent order with the Federal Deposit Insurance Corp (FDIC). Go online or call to do an assessment of your debts and suitability for the program with a Freedom representative. About half of the average debt held by Black and Hispanic borrowers would be wiped out, according to the White House. Typically a client would save up to 50 on their. The company does not charge any fees upfront and is highly regarded in the industry. FREED can help you reduce these by negotiating with your creditors on your behalf. As part of the settlement, the Freedom has agreed to pay $20 million in restitution to affected consumers and a $5 million civil money penalty. The president’s plan forgives up to 10,000 in federal student debt for borrowers, and doubles the debt relief to 20,000 for borrowers who also received Pell Grants. Freedom Debt Relief offers settlement solutions for people with over 7,500 in debt. According to complaints, the company purposefully extends payments for clients to pay interests. The Consumer Financial Protection Bureau (CFPB) has settled its lawsuit against Freedom Debt Relief. Corporate Office 1875 South Grant Street, Suite 400 San Mateo, CA 94402 +1 65 Store hours unlisted Billing Issues A top complaint against Freedom Debt Relief, LLC is about the company’s billing.
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