4.2/5
Service Evaluation
Freedom Debt Relief is the largest debt settlement company in the United States, co-founded in 2002 by Bradford Stroh and Andrew Housser, headquartered in San Mateo, California. The company holds a BBB A+ rating, has been BBB-accredited since April 30, 2015, and has settled over $20 billion in debt across 4 million accounts for more than 1 million clients. It resolved a 2019 CFPB enforcement action ($25 million total) and now operates under strict FTC Telemarketing Sales Rule compliance. BestGuide rating: 4.3 / 5.
Freedom Debt Relief is a legitimate, BBB-accredited debt settlement company that has negotiated over $20 billion in unsecured debt for more than 1 million US clients across 23 years of operation. The company helps consumers with $7,500 or more in unsecured debt (credit cards, medical bills, personal loans) by negotiating with creditors to accept less than the full balance owed. This review covers how the program works, what it costs, its BBB data, lawsuit history, credit score impact, and how it compares to National Debt Relief and other top competitors. To speak with a specialist, call (866) 598-9330.
Freedom Debt Relief Pros and Cons
| Pros | Cons |
|---|---|
| 23 years in operation, the largest debt settlement company in the US | Debt settlement negatively impacts credit scores during the program |
| BBB A+ rating, accredited since April 30, 2015 | 286 BBB complaints in the last 3 years (high in absolute terms, in line with scale) |
| No upfront fees, FTC Telemarketing Sales Rule compliant | Fees of 15 to 25% of enrolled debt per settled account add up on large balances |
| $20 billion in resolved debt across 4 million accounts; 1 million clients served | Not all creditors agree to settle, program success is not guaranteed |
| Founding member of AADR (American Association for Debt Resolution); platinum IAPDA member | Programs typically run 24 to 48 months, requires long-term payment discipline |
How Freedom Debt Relief Works
Freedom Debt Relief offers debt settlement programs that help clients reduce unsecured debt through negotiated payoffs with creditors. The process follows five stages:
- Free Consultation (866) 598-9330: A representative reviews your unsecured debts, income, and monthly budget, explains how the program works, and assesses eligibility. There is no cost or obligation for this call.
- Customized Program Proposal: If you qualify, you receive a written proposal with an estimated monthly payment, projected timeline, and full disclosure of fees and risks, including potential credit score impact and possible collection activity during negotiations.
- Enrollment and Monthly Deposits: You make a single monthly deposit into a dedicated FDIC-insured account. You do not borrow new money. Funds accumulate until enough is available to negotiate a settlement with each creditor.
- Creditor Negotiations: Freedom Debt Relief’s negotiators contact creditors to secure written settlement agreements for less than the total amount owed. Both parties must agree before any funds are disbursed.
- Settlement and Ongoing Support: Once a settlement is reached, funds from your dedicated account pay the agreed amount. You can track all progress through the Freedom Debt Relief client dashboard and reach support at (866) 598-9330 at any time.
Is Freedom Debt Relief Legit?
Yes, Freedom Debt Relief is a legitimate, FTC-compliant debt settlement company with a 23-year operating history. The evidence:
- Co-founded in 2002 by Bradford Stroh and Andrew Housser: Both Stanford MBA graduates, Stroh and Housser established the company to provide affordable debt relief options after recognizing a gap in traditional financial services. Bradford Stroh continues to serve as CEO. Andrew Housser is the co-founder. Sean Fox serves as President and CRO.
- BBB A+ rating: Continuously accredited since April 30, 2015 (BBB Serving San Francisco Bay Area and Northern Coastal California).
- FTC Telemarketing Sales Rule compliance: Freedom Debt Relief does not charge upfront fees. Fees apply only after a settlement is reached and the client approves it, the legal requirement for phone-sold debt relief programs.
- Registered and licensed: The company holds NMLS licenses (#1248929 expiring 12/31/2026, and #227977 expiring 4/14/2027) issued by Nationwide Mortgage Licensing System/NMLS. Registered as a Limited Liability Company in California with BBB Business Started date of March 6, 2003.
- Industry leadership: Founding member of the American Association for Debt Resolution (AADR, formerly AFCC). Platinum member of the International Association of Professional Debt Arbitrators (IAPDA). Andrew Housser served on the AFCC Board of Directors since 2006 and received the President’s Award in 2010 for industry advocacy.
- Scale and track record: Approximately 1,200 employees on the BBB profile (over 2,000 across Freedom Financial Network). The company has resolved more than $20 billion in debt across 4 million accounts, serving over 1 million clients.
- CFPB action resolved: The company resolved a significant 2019 CFPB enforcement action with a $25 million settlement. See the lawsuit section below for full details.
Freedom Debt Relief BBB Rating
| BBB Data Point | Verified Value |
|---|---|
| BBB Letter Grade | A+ |
| BBB Accredited Since | April 30, 2015 |
| Customer Review Score | 4.4 / 5 stars (1,573 reviews) |
| Complaints (last 3 years) | 286 total; 89 closed in last 12 months |
| Business Started | March 6, 2003 (23 years in business) |
| Business Incorporated | March 10, 2003 |
| BBB File Opened | July 8, 2003 |
| CEO | Bradford Stroh (co-founder) |
| Managing Partner | Jeffrey Staley |
| Principal | Andrew Housser (co-founder) |
| Director of Client Services | Sara Vick |
| Number of Employees | 1,200 (BBB profile) |
| Registered Address | 1875 S Grant St Ste 300, San Mateo, CA 94402-7025 |
| Local BBB | BBB Serving San Francisco Bay Area and Northern Coastal California |
| Alternate Name | FDR |
| Type of Entity | Limited Liability Company (LLC) |
The 286 complaints over 3 years should be contextualized against the company’s scale. Freedom Debt Relief serves tens of thousands of active clients annually, and the complaint ratio is relatively low for a high-volume financial services company. Most complaints on the BBB profile are addressed by the company. The BBB Customer Complaint note on the profile indicates BBB last reviewed the company file in March 2026.
Freedom Debt Relief Lawsuit History
Freedom Debt Relief has been involved in two notable legal actions: a 2019 CFPB enforcement case and a 2024 TCPA class action settlement. The verified facts:
2019 CFPB Enforcement Action ($25 Million Settlement)
- What the CFPB alleged: The Bureau alleged that Freedom Debt Relief charged consumers without settling their debts as promised, charged consumers after having them negotiate their own settlements with creditors, and misled consumers about the company’s fees and ability to negotiate directly with all creditors. The case was filed under the Consumer Financial Protection Act (CFPA) and Telemarketing Sales Rule (TSR). Andrew Housser was also named individually in the case.
- The settlement: Under a Stipulated Final Judgment and Order entered by the U.S. District Court for the Northern District of California (Case No. 17-cv-06484) on July 9, 2019, Freedom Debt Relief agreed to pay approximately $25 million, consisting of $20 million in consumer restitution and a $5 million civil money penalty, without admitting wrongdoing.
- Current status: The case is fully resolved. Since the 2019 settlement, Freedom Debt Relief has operated under heightened compliance standards. The company’s FTC TSR compliance (no upfront fees, clear disclosures before enrollment) is now explicitly cited in its program materials.
2024 TCPA Class Action ($9.75 Million Settlement)
- What the case alleged: The class action filed in U.S. District Court for the Northern District of California alleged Telephone Consumer Protection Act (TCPA) violations by Freedom Financial Network, Freedom Debt Relief, Fluent, Inc., and Lead Science, LLC related to consumer marketing practices.
- The settlement: The Court granted final approval to a $9.75 million class action settlement in March 2024, which delivered between $116 and $232 to nearly 40,000 class members. The defendants did not admit wrongdoing.
Consumer searches for “Freedom Debt Relief lawsuit” typically reflect due diligence rather than ongoing litigation. According to U.S. News, in 2024 the CFPB received 32 complaints about Freedom Debt Relief’s settlement services. All but one received a timely response: 27 were closed with explanation, 3 closed with monetary relief, and 2 remained in progress. No new major federal regulatory enforcement actions against Freedom Debt Relief appear in public CFPB or FTC records since the 2024 class action.
Does Freedom Debt Relief Hurt Your Credit?
Yes, debt settlement with Freedom Debt Relief will negatively impact your credit score, and this is expected as part of the program. How it works:
- Why it happens: To build up settlement funds, clients typically stop making minimum payments to enrolled creditors. These missed payments are reported to credit bureaus and lower your credit score.
- How long the impact lasts: Negative marks from missed payments can remain on your credit report for up to 7 years, though the practical impact diminishes over time as accounts are settled and the ratio of delinquency decreases.
- After the program: Once debts are settled, your credit utilization drops significantly and your account statuses update to “settled.” Many clients see credit scores begin to recover within 12 to 24 months of completing the program.
- The trade-off: For clients already missing payments due to unmanageable debt, the credit impact of debt settlement is often already occurring. The program resolves the underlying debt faster than minimum payment strategies would.
If preserving your credit score is a top priority, debt settlement is not the right solution. Consider nonprofit credit counseling or a debt management plan (DMP) instead, which can reduce interest rates while maintaining on-time payment status.
Freedom Debt Relief vs National Debt Relief
The two most-compared debt settlement companies in the US are Freedom Debt Relief and National Debt Relief. How they compare:
| Criteria | Freedom Debt Relief | National Debt Relief |
|---|---|---|
| Founded | 2002 (23 years) | 2009 (16 years) |
| BBB Rating | A+, Accredited (4.4/1,573) | A+, Accredited |
| Minimum Debt | ~$7,500 | ~$7,500 |
| Fees | 15 to 25% of enrolled debt per settlement | 15 to 25% of enrolled debt per settlement |
| Upfront Fees | None (FTC-compliant) | None (FTC-compliant) |
| Program Length | 24 to 48 months | 24 to 48 months |
| Key Differentiator | Larger and older; 1,200 employees; $20B settled; AADR founder | Strong customer satisfaction scores; IAPDA certification |
Both companies offer nearly identical services at similar price points. Freedom Debt Relief has the edge in scale, tenure, and industry leadership (AADR founding member); National Debt Relief is often praised for customer experience scores. Getting quotes from both before enrolling is worth the time.
Freedom Debt Relief Fees and Costs
Freedom Debt Relief charges no upfront fees, a legal requirement under the FTC Telemarketing Sales Rule for phone-enrolled debt relief programs. Fees apply only after a settlement is reached and the client approves it.
| Fee Type | Amount | When Charged |
|---|---|---|
| Upfront Fee | $0 | Never |
| Settlement Fee | 15 to 25% of enrolled debt per account | After each settlement is approved |
| Monthly Account Fee | ~$9.95 (dedicated account maintenance) | Monthly during program |
| Consultation | Free | (866) 598-9330 |
On a $20,000 enrolled debt balance, a 20% settlement fee equals $4,000. Per the original CFPB allegations and current FTC TSR compliance, fees typically range from 18 to 25% of the original debt amount based on industry public records. Request a full written fee disclosure before enrollment and compare total program cost against your current minimum payment trajectory.
Freedom Debt Relief vs Top Competitors
| Company | Founded | BBB | Min. Debt | Fees |
|---|---|---|---|---|
| Freedom Debt Relief | 2002 | A+ Accredited | ~$7,500 | 15 to 25% |
| National Debt Relief | 2009 | A+ Accredited | ~$7,500 | 15 to 25% |
| Accredited Debt Relief | 2011 | A+ Accredited | ~$10,000 | 15 to 25% |
| Curadebt | 2000 | A+ | ~$5,000 | 15 to 25% |
| Americor | 2009 | A+ Accredited | ~$7,500 | 15 to 25% |
See our full comparison at Best Debt Relief Companies 2026.
Frequently Asked Questions — Freedom Debt Relief
- Is Freedom Debt Relief legit?
- Yes. Freedom Debt Relief is a legitimate debt settlement company with 23 years of operation, a BBB A+ rating, BBB accreditation since April 30, 2015, and FTC Telemarketing Sales Rule compliance. It is the largest debt settlement company in the US, co-founded by Bradford Stroh and Andrew Housser in 2002. A 2019 CFPB enforcement action was resolved through a $25 million settlement.
- Who owns Freedom Debt Relief?
- Freedom Debt Relief was co-founded in 2002 by Bradford Stroh and Andrew Housser, both Stanford MBA graduates. Bradford Stroh continues to serve as CEO. Andrew Housser remains involved as a principal. Sean Fox serves as President and CRO. The company is part of Freedom Financial Network and is headquartered at 1875 S Grant St Ste 300, San Mateo, CA 94402-7025.
- What is Freedom Debt Relief?
- Freedom Debt Relief is a US-based debt settlement company headquartered in San Mateo, California. It negotiates with creditors on behalf of clients to settle unsecured debts (credit cards, medical bills, personal loans) for less than the full amount owed. The company has resolved over $20 billion in debt across 4 million accounts for more than 1 million clients.
- How does Freedom Debt Relief work?
- Clients make one monthly deposit into a dedicated FDIC-insured account. Freedom Debt Relief’s negotiators approach creditors with settlement offers once enough funds accumulate. After both parties agree, the settlement is paid from the account. Clients track progress through an online dashboard.
- Does Freedom Debt Relief hurt your credit?
- Yes. To build settlement funds, clients typically stop paying enrolled creditors, which causes missed payment marks on credit reports. These marks can remain for up to 7 years, though many clients see credit recovery begin 12 to 24 months after completing the program.
- How long does Freedom Debt Relief affect your credit?
- Negative marks from missed payments during the program can remain on your credit report for up to 7 years. In practice, the impact diminishes over time as debts are settled and balances drop. Clients who complete the program and resume normal financial behavior typically see meaningful credit improvement within 1 to 3 years post-program.
- What was the Freedom Debt Relief lawsuit?
- In 2019, the CFPB filed enforcement action against Freedom Debt Relief and co-founder Andrew Housser, alleging the company charged fees before fully settling debts and misrepresented customers’ legal rights. The case was resolved with a ~$25 million settlement ($20M consumer redress + $5M penalty) in the U.S. District Court Northern District of California (Case No. 17-cv-06484). A separate 2024 TCPA class action involving Freedom Financial Network, Freedom Debt Relief, Fluent, and Lead Science was settled for $9.75 million.
- What is Freedom Debt Relief’s BBB rating?
- As of May 2026, Freedom Debt Relief holds a BBB A+ rating with 4.4 stars across 1,573 verified customer reviews. The company has been BBB-accredited since April 30, 2015, under BBB Serving San Francisco Bay Area and Northern Coastal California. There are 286 complaints filed in the last 3 years, 89 of which were closed in the last 12 months.
- How much does Freedom Debt Relief charge?
- Freedom Debt Relief charges no upfront fees. Fees of 15 to 25% of enrolled debt per account are charged only after a settlement is approved. A monthly account maintenance fee of approximately $9.95 applies during the program.
- How does Freedom Debt Relief compare to National Debt Relief?
- Both companies have a minimum debt of ~$7,500, charge 15 to 25% fees, hold BBB A+ accreditation, and run programs of 24 to 48 months. Freedom Debt Relief is older (founded 2002 vs 2009), larger ($20B+ settled, 1M+ clients), and a founding member of AADR. National Debt Relief is often cited for strong customer satisfaction. Getting quotes from both is recommended before enrolling.
- What is the minimum debt for Freedom Debt Relief?
- Freedom Debt Relief typically requires a minimum of $7,500 in unsecured debt. Only unsecured debts qualify (credit cards, medical bills, personal loans). Secured debts like mortgages, auto loans, and student loans are not eligible.
- How do I contact Freedom Debt Relief?
- Call (866) 598-9330 for a free consultation. Existing clients can log in to the Freedom Debt Relief client dashboard at freedomdebtrelief.com to track progress, upload documents, and message their account team.
- Is Freedom Debt Relief a good company to use?
- Freedom Debt Relief is a well-established option for consumers with $7,500 or more in unsecured debt who are struggling with minimum payments and want a structured path to resolution. It is not appropriate for everyone, the credit impact and multi-year commitment are real. Comparing with nonprofit credit counseling or a debt management plan is advisable before enrolling.
- What types of debt does Freedom Debt Relief handle?
- Freedom Debt Relief handles unsecured debts only: credit cards, department store cards, medical bills, personal loans, and lines of credit. Secured debts (mortgages, auto loans), federal student loans, tax debts, and utility bills are not eligible for the settlement program.
Reviews
Carrie L
Oct 17, 0025
I was skeptical at first but took a deep breath and filled out the questionnaire online. I received the phone call and Georgia walked me through all the steps. 3 months later I got my first ...
I was skeptical at first but took a deep breath and filled out the questionnaire online. I received the phone call and Georgia walked me through all the steps. 3 months later I got my first settlement, let me tell you what a relief I felt. My husband was diagnosed with cancer last year, this year the cancer has metastasized so bills kept piling up. I cant recommend Freedom Debt Relief enough. I need to focus on my husbands health and not worry about credit card debt like I was, Freedom Debt Relief made that possible for me
Anjanette B
Oct 15, 2025
This was new to me I was very afraid but my debt was getting too much for me to handle. I called a few places but Freedom broke it down and actually took the time and was very patient with e...
This was new to me I was very afraid but my debt was getting too much for me to handle. I called a few places but Freedom broke it down and actually took the time and was very patient with explaining it all. I took a day or two to make a decision and I am happy I chose to go through with it. It takes a minute but Im not stressed or worried about payments.
Lisa C
Oct 9, 2025
I had some credit card **** to me it was scarey to FDR no problem.They have done everything thing they said they would ***** credit score has went down.They said it will come back up.But als...
I had some credit card **** to me it was scarey to FDR no problem.They have done everything thing they said they would ***** credit score has went down.They said it will come back up.But also a low credit score helps me to not do this again.