The settlement company sets that money aside and then tries to settle the debts one at a time by offering a lump sum to the creditors. Freedom didn’t tell customers about the right to a refundįreedom didn’t tell customers about the right to a refund.ĭebt settlement works by having the client pay some money every month to the settlement company. We tell you exactly how much it costs when we first meet, and we see the case through to a successful discharge without nickel and diming our clients. Walker & Walker Law Offices does bankruptcy in Minnesota on an affordable flat fee. The complaint alleges that Freedom was taking fees for other reasons also, such as when the collector voluntarily gives up on collecting the debt. In debt settlement, the company takes as a fee a portion of any money that they get the creditors to forgive. Freedom wasn’t totally honestįreedom wasn’t totally honest about how their fees worked. They can try and fight or contest a bankruptcy, but only if they have proof that the client has been dishonest or fraudulent. In bankruptcy, creditors don’t have a choice of whether to accept the outcome or not. Freedom deceived customersįreedom deceived customers about the scope of their services.Īpparently, Freedom was telling clients that they will deal with all of the debts, but in reality knew that there were certain creditors that would never work with them. Debt settlement companies do not stop debt collection law firms from getting judgments while they are working to settle the other debts.īankruptcy, however, has the automatic stay immediately stops any creditor from trying to get a judgment, and voids or discharges most pre-existing judgments. The debt settlement company can’t keep the other debt collectors at bay. In my experience, people who try debt settlement companies have a little initial success in settling a few debts, but the other creditors continue to collect and maybe even get judgments. The complaint filed against Freedom Debt Relief mentions exactly these problems.Ī few things that the complaint says about Freedom: Freedom misled customersįreedom misled consumers about whether ALL of the creditors will be willing to negotiate, or only SOME of them will be willing to negotiate. Often times they tell me that the settlement company had terrible customer service, and that the client couldn’t tell what was happening. The Consumer Financial Protection Bureau recently brought a case against Freedom Debt Relief alleging that Freedom Debt Relief wasn’t telling its customers everything about how settlement works, and that it wasn’t handling their debts like it advertised.Īs a bankruptcy practitioner, I meet with lots of people who have tried debt consolidation using debt settlement companies first. Brooklyn Park Bankruptcy Attorneys Office + ExpandĪ warning to people thinking about debt settlement companies.Blaine Bankruptcy Attorneys Office + Expand.St Paul Bankrutptcy Attorneys Office + Expand.Minneapolis Bankruptcy Attorneys Office + Expand.Modification to Bankruptcy Plan + Expand.Qualifying for Chapter 7 Bankruptcy + Expand.

Freedom debt consolidation reviews