Freedom Debt Relief settled an 18-month-old civil lawsuit filed by the California Department of Corporations and the San Mateo, CA District Attorney's Office with no findings of wrongdoing and without any admission of liability.
Freedom Debt Relief provides consumer debt settlement services. Since its 2002 founding, Freedom Debt Relief has settled more than $500 million in consumer debt, achieving an average savings rate of nearly 60 percent on total client debtbalances. It has served more than 70,000 clients since 2002, and employs 580 employees. As an alternative to credit counseling, debt consolidation and bankruptcy, Freedom Debt Relief's debt settlement programs help qualified clients resolve their debts, typically in two to four years.
The basis of the complaint was that Freedom Debt Relief operated without a California "prorater" license. However, the consent judgment acknowledges that the Freedom Debt Relief business model is compliant with California law and that the company does not need a prorater license. This is the first known case where a debt settlement company has been acknowledged to be compliant with current California law.
"We recognize this as validation that our debt settlement business model works in the consumer's best interest,"said Andrew Housser, co-CEO of Freedom Debt Relief. "We look forward to continuing to help more people in need throughout California and the nation."
"Freedom Debt Relief is very proud to have been able to work constructively with the Department of Corporations and the District Attorney to arrive at an outcome that provides a consumer-focused framework for debt settlement services offered to California residents," Housser said.
The settlement acknowledges that Freedom Debt Relief cooperated fully with both the district attorney and the Department of Corporations in their investigation and with the resolution of the case. To learn more about Freedom Debt Relief, see the Bills.com resource Freedom Debt Relief Review .