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Hundreds of cash-strapped Washington consumers who were overcharged by debt-relief company Freedom Debt Relief will receive nearly $740,000, thanks to a settlement reached with the Washington State Attorney General’s Office. The settlement was reached in conjunction with a proposed class action lawsuit settlement against the company.
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About 1,100 Washington consumers who collectively owed $35 million in debt enrolled in Freedom Debt Relief’s program, which purports to work out a deal with credit card providers to minimize their debt. Under its program, consumers stop making payments to their unsecured creditors and allow those accounts to go into default. Debtors then pay into a bank account they control, which is subsequently used to settle their debts. Freedom Debt Relief deducts its fees from the account. When sufficient money has accumulated in a consumer’s account, Freedom Debt Relief attempts to negotiate with creditors to settle the debts for a fraction of the balance.
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The A.G. said the California-based company had broken local consumer protection laws by overcharging customers more than the state’s legal cap of 15 percent, taking fees before the legal time allowed, and failing to adequately inform consumers about how the program works.
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Freedom Debt Relief stopped enrolling Washington residents in March 2009, when a private class action lawsuit was filed against it. The lawsuit, entitled Carlsen et al. v. Freedom Debt Relief, LLC, et al., is still pending a settlement approval hearing set for April 4.
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Under the A.G.’s settlement, Freedom Debt Relief will refund more than 570 customers for all fees paid in connection with debts that weren’t settled or aren’t in active negotiation programs, up to $742,613 or more. The refund program will be handled through the Carlsen v. Freedom Debt Relief class action lawsuit. Once the court in that case gives approval of the proposed class action settlement in April, eligible consumers will be contacted about the refund process, how much money they are eligible to receive, and how to submit a claim.
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Class members of the Freedom Debt Relief class action lawsuit, which also names Freedom Financial Network as a defendant, can read more about their rights under the proposed class action lawsuit settlement in the Settlement Notice. All class members will automatically receive refunds if the proposed settlement is approved. No claim form required.Â
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Updated March 7th, 2010
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53 thoughts onFreedom Debt Relief Settlements Reached
This is crazy!! I received this card a while back and i have heard nothing. Freedom debt Relief took a lot of my money and did absolutely nothing for me except distroy my credit more then it already was. I have tried to contact the lawyers that they show you on the site who are handling the case but i recieve no response. It would be nice to know the progress of this case and get some answers.
Freedom Debt Relief Settlements Reached
I would love to receive my money back for Freedom Debt Relief. I live in the state of Wisconisin. I haven’t seen anything about any lawsuit in my state. Can someone please send me any information reqarding
as to how I could get my money back.
Thank you!
Freedom Debt Relief Settlements Reached
I reieved this card long time back hope get my money back live in Nevada
Freedom Debt Relief Settlements Reached
I live in ohio. I have lots of problem with freedom. Will I get back my 5500.00? Please let me know.
Freedom Debt Relief Settlements Reached
I live in Wisconsin and have recieved a settlement notice as well. What else am i supposed to do? they ripped me for $2000. Do we have to fill anything out?
Freedom Debt Relief Settlements Reached
Maybe I am a exception, but FDR settled my $47K debt and saved me 47%. One exception was Bank of America (FIA) they will not work with Debt settlement companies. You have to wait until they go to a third party collector, which then pile on the fees. But they did negotiate a separate, no-interest payment plan. Hard to pin them down some times on their fee schedule, but you need to be persistent.
Freedom Debt Relief Settlements Reached
I live in indiana and got a notice. Will i too get a refund? I was forced into bankruptcy because they couldnt settle anything or weren’t trying.
Freedom Debt Relief Settlements Reached
I live in Ohio and also received a notice but cannot find out what is going on. I would love to be able to get my money back. Freedom took over $5500 and only settled one account for $600! What did the rest of the money go for?!?!? Anyone with any information I would gladly appreciate!
Freedom Debt Relief Settlements Reached
I live in MS and I also received notice of the lawsuit against FDR. Will I be entitled to a refund?
Freedom Debt Relief Settlements Reached
I live in Texas and recieved a notice of pending lawsuit against FDR, do I qualify too, for a refund? Anyone knows??
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