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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
I, too have been ripped off by Freedom From Debt Relief- they keep adding fees and no settlement
One of my accounts was with the legal department due to a civil complaint filed against me. For months this went by and the ACT team told me that their negotiators are on it. Finally after numerous calls to them, they finally stated to me that my account had been settled and they were just waiting on the lawyers to respond. I kept attempting to find out as weeks passed and each time they would say, we will escalate this matter and get out to them by Friday, call back in 5 days. Recently, my only checking account was frozen and I could not withdrawal any funds out of my personal bank. I have a family of 4 and couldn’t buy groceries, pay bills, or other necessities in life. I got no support from FDR. I ended up removing the money from my crossroads financial account and went to the lawyers myself. I am in the process of paying back my debtors but also paying the lawyer fees. At this time, they stated to me that it still may be about 2 more weeks until I can access my bank account again. Totally unprofessional and very disappointed that people in this company can just drop the ball like this and not care. And please don’t respond (FDR) that you understand and you are sorry. You have no idea.
I live in Oklahoma and am a victim as well. What can I do to receive compensation?
I received a notice a few years ago and then inquired online in 2011 in which it was published that the trial was scheduled for Oct. 11, 2011 but have never received any more notices. We have moved twice since then and would appreciate any updates. The website and telephone numbers on the notice have been discontinued. Please help. Thanks.
I received a Court Ordered Notice that I was a Member of the Class Action lawsuit against Freedom Debt Relief and was informed that I needed to do nothing until a Judgement was reached. I have never recieved any other communication from Lawsuit. In the notice it stated that no claim forms required.one of the attorneys was listed as Kimberly Mirando, but not the Law Firm. I contacted an agent at 1-612-359-2888 and was told that I should have filed a claim form, which I did not receive and that the Settlement Funds had been distributed. It seems that I was not the only one that was passed over. The initial claim was filed in the state of Washington and that is where the name Kimberly Mirando was found.I am going to keep digging and if anyone has anything to assist send to ttmet9198@aol.com.
I was with freedom debt and was receiving updates about this lawsuit however my addressed changed and I have got no new updates about the money they took from me …please help
Thank you David McEvoy
WELL FREEDOME DEBT RELIEF I THINK PAID PEOPLE TO BE PART OF THE ATTORNEY TEAM. I WAS WAITING FOR MY SETTLEMENT LIKE MANY OF YOU, I CALLED AND THEY SENT OUT A PACKET AND IF YOU DID NOT RETURN THAT PACKET BY LAST JUNE, YOU ARE EXCLUDED FROM THE SETTLEMENT AND WILL NOT GET ANY MONEY!!!!!!I NEVER RECEIVED A PACKET TO SEND BACK SO TO BAD FOR ME, THERE IS NOTHING THEY CAN DO, SO I GET NO MONEY. IT HAD BE TO RETURNED FOR YOU TO BE PART OF IT. IS THERE ANY ACTION WE CAN TAKE AGAINST THEM AS I NEVER RECEIVED ANYTHING AND AS THE GAL TOLD ME I MAYBE THOUGHT IT WAS JUNK MAIL AND THREW IT AWAY. I AM PRETTY SURE I READ EVERYTHING AS I WAS WAITING TO GET THAT MONEY AND WAS COUNTING ON IT. SO THEY GET THE LAST LAUGH AGAIN.
It would seem that we have another Class Action Lawsuit at hand here. I am going to attempt to Locate the Law Firm and the Court that rendered the Judgement. If anyone has any info contact me at ttmet9198@aol.com.
I’ve stopped payment to FDR 41 payments my account has over 8,000 in it the company wants to keep withdrawing money from my account
Who can we speak to about this rip off company ?.
I live in Texas and received a check for $33.42, i paid $806.16 in fees. This was according to a letter i received. What happened to the rest of my money? Everyone should have got a full refund. It’s not our fault that Freedom Debt took advantage of us. People like me trusted them to help, what a joke that turned out to be. This whole thing has been a ripoff. They should pay everyone what they owe. I understand that the lawyers and court have to be paid first but what about the rest of us. We all need our money too, especially these days. Why don’t we get paid in full too? I was expecting to get a full refund, what a disappointment. It is absolutely a ridiculous situation. I will never trust a debt solution company again. I am very disappointed with the class action suit. They led me to believe that I was receiving all of the money I paid.
Hahahaha just got my check for 54.00 and I paid 2700.00 in fees