Freedom Debt Relief Review (2024)

Pros Explained

• Client dashboard: Customers can access their account to view progress and approve settlements through an online dashboard.
• Customer service available seven days a week: Rather than waiting for a business day, customers with questions are able to reach customer service any day of the week.
• Refund guarantee: Freedom Debt Relief offers a refund the difference if your total program settlement cost is more than the total amount of debt, for up to 100% of the fees paid.

Cons Explained

• Written cancellation notice required: You can cancel your service at any time and receive a refund of your funds (except fees). However, you must send your cancellation notice in writing.
• Previous CFPB action: Freedom Debt Relief previously settled a lawsuit brought by the CFPB with charges alleging the company failed to follow rules regarding fees and proper disclosures.

Types of Debt Addressed

Freedom Debt Relief helps with unsecured debts, which are debts that aren't tied to collateral. The company’s website lists a few specific types of debt that the company addresses.

Credit Cards

Credit card debt is one of the most common types of unsecured debt. With high interest rates, credit card debt is also one of the most expensive. Through successful debt settlement, Freedom Debt Relief can help you reduce the amount you owe.

Medical Debt

Roughly 20% of households report that they have medical debt, according to a 2022 CFPB report. Debt relief can lower your medical debt, which often results from unexpected or emergency medical expenses, or unavoidable treatments for chronic illness. A single visit can even result in multiple charges from different providers.

Personal Loans

Personal loans are a type of loan that does not require collateral. The loans, provided in a lump sum and repaid over a set time period, can be used for nearly any expense, but they are often used for large purchases, home repairs, moving expenses, or even debt consolidation. Defaulted personal loan balances can be negotiated with the lender to lower the balance due.

Private Student Loans

Private student loans are offered through private lenders and don't have the flexibility or protection that comes with federal student loans. They may have variable interest rates that reset often, leading to higher monthly payments. Debt settlement may help reduce private student loans that have become unaffordable.

Business Debts

If you own a business that owes money to another business, you may be able to seek debt relief to lower the amount you owe. Freedom Debt Relief says it helps with business debts on a case-by-case basis.

Client Onboarding Process

To qualify with Freedom Debt Relief, you must live in one of the states where it offers services, and the company recommends you owe a minimum of $7,500 in unsecured debt.

1. The process starts with a free debt evaluation where you and a Freedom Debt Relief representative discuss your debt, goals, and options, including bankruptcy and credit counseling. You can call or complete an online form to schedule your free evaluation.
2. Review your personalized assessment that details your debt relief plan based on whether you're experiencing hardship and what you can afford to pay.
3. Review terms of the program before enrolling so you know what to expect during the process.
4. Once enrolled, you'll begin making payments to a dedicated account that will eventually be used to settle your debts.

Customer Service

Freedom Debt Relief has a team of over 200 debt negotiators, 550 certified debt consultants, and 350 customer service representatives. Customer service can be reached by phone or email seven days a week.

Current clients can reach a representative from 8 a.m. to 9 p.m. ET Monday through Thursday, 8 a.m. to 8 p.m. ET on Friday, and 10 a.m. to 8 p.m. ET on Saturday and Sunday.

Company Reputation

On third party sites users rated the company very highly, and the majority of reviews are positive. However, a few reviewers complain about the fees and the amount of time it takes (both are discussed on the company's website).

Freedom Debt Relief has a previous legal action against it from a regulatory agency. In 2019, Freedom Debt Relief settled a lawsuit with the CFPB related to its debt relief practices. It agreed to pay $20 million restitution to affected clients and a $5 million fine for alleged violations related to fees charged and proper customer disclosures.

Expected Relief Amount

Freedom Debt Relief's website doesn't mention an expected relief amount.

Expected Time to Complete the Program

Freedom Debt Relief says it takes about 24 to 48 months to complete its program, which is in line with industry standards, although the company makes no guarantees and the exact time will vary. Though it may take several months to fully complete the program, it's possible to receive the first results rather quickly. According to the company, over 60% of consumers settle a debt within the first three months of enrollment.

The amount of time it takes to complete the program depends on several factors, including the amount of debt you have, the specific creditors you owe, the amount you can save each month, and whether you're consistent with savings deposits.

Expected Cost

Freedom Debt Relief charges a fee of 15% to 25% of debt enrolled, which varies by state, and is comparable to other debt relief companies. Under federal law, you can't be charged for debt relief services until after a settlement has been reached and paid. Based on its terms and website content, Freedom Debt Relief follows this law.

You'll also pay a one-time $9.95 setup fee and $9.95 monthly fee for the dedicated savings account. This payment is collected by a separate company that maintains the account.

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