The bureau's 2017 lawsuit alleged five counts. Freedom charged fees of 18% to 25% on debts that it settled. That count has since grown to 2,200.Īccording to the bureau's lawsuit, filed in November 2017, Freedom claimed to have negotiated debt reductions totaling more than $7 billion for more than 450,0000 people enrolled in its debt-settlement program.Ĭonsumers enrolled in the debt-settlement program often were instructed by the company to change their billing addresses on credit accounts to another Freedom address in Tempe, on Wendler Drive. Freedom Debt Relief is one of its companies.įreedom Financial Network, which includes related businesses, reported 2,125 Arizona employees and placed 83rd in this year's Arizona Republic 100 report on largest statewide employers.
Freedom's Arizona presenceįreedom Financial Network, founded in 2002 and based in San Mateo, California, operates a large and growing office in Tempe, on the south shore of Tempe Town Lake. The bureau is overseeing restitution and will contact affected consumers, who don't need to take any action. "As the leader in debt settlement, we continue to work hard every day to deliver outstanding service and the best possible outcomes to consumers who turn to us for help," the company said.
Moving forward, Freedom vowed to cooperate with the bureau. "In resolving the case, we have agreed to make some changes to our disclosures and policies to enhance our program, many of which were implemented when the case was first filed," the company said. The settlement bars Freedom from engaging in such conduct in the future.įreedom issued a statement saying that it has worked closely with the bureau over the past year and a half to address these concerns, provide insights into the debt-relief program and continue to serve clients. The bureau alleged Freedom, one of Arizona's largest employers, sometimes charged consumers without settling their debts as promised, charged customers after having them negotiate their own settlements with creditors and misled customers about its fees and ability to negotiate on behalf of consumers to reduce debts.
The complaint also named Andrew Housser, the company's co-CEO and co-founder, whom the bureau said actively oversaw such practices. The allegations included charging consumers fees in advance of work completed and failing to inform them of their right to receive unused money deposited with the company. A debt-relief company has been ordered to pay $20 million in restitution to customers and a $5 million fine to the government over its marketing and business practices.įreedom Debt Relief, with a large office in Tempe, agreed to pay the restitution and the civil penalty for various infractions, without admitting guilt, as part of a settlement with the federal Consumer Financial Protection Bureau.
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