On this page16 sections
- Ratings and complaints
- Freedom Debt Relief vs. competitors
- Pricing
- Step by step
- Freedom Debt Relief legitimacy and licensing
- Freedom Debt Relief fees explained
- How Freedom Debt Relief works
- How Freedom Debt Relief Works
- Does Freedom Debt Relief Hurt Your Credit?
- Freedom Debt Relief lawsuits and regulatory history
- Does Freedom Debt Relief hurt your credit?
- How to cancel Freedom Debt Relief
- The rules that protect you
- What customers say
- Alternatives
- FAQ
Freedom Debt Relief fits people with large credit card or other unsecured balances they can't repay, who can save a set amount each month for 2 to 4 years and accept serious credit damage along the way. It is a legitimate and very large debt settlement company: it says it has served over 1 million clients and resolved more than $20 billion in debt since 2002, it is BBB accredited with an A+, and it is now a subsidiary of Achieve. Know the record before you sign: a 2019 CFPB settlement ($20 million in restitution plus a $5 million penalty), a 2020 New York Attorney General settlement and a $9.75 million robocall class settlement. Talk to a nonprofit credit counselor first, since a debt management plan can cost less and protect your credit.
Your options
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Freedom Debt Relief This company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints. This review People with large unsecured balances they can't pay in full, who can make steady monthly deposits for 2 to 4 years and accept the credit damage.
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Americor This company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints. Alternative People with $7,500 or more in unsecured debt who cannot keep up with minimum payments and have ruled out credit counseling.
- Company
- Freedom Debt Relief, LLC, 1875 S Grant St #300, San Mateo, California; NMLS ID 1248929; a subsidiary of Achieve2
- Fee
- 15% to 25% of enrolled debt, varying by state and amount; collected only after you authorize a settlement and the first payment is made1
- Account fees
- Dedicated account at Crossroads Financial Technologies: $9.95 setup and $9.95 a month, paid to the account provider, not Freedom1
- Program length
- 24 to 48 months on average; first settlement typically in months 4 to 61
- Fee guarantee
- If total settlement costs plus Freedom’s fees exceed the debt you enrolled, it refunds the difference, up to 100% of collected fees1
- Cancellation
- Cancel any time in writing with no penalty; remaining funds, minus fees already earned, returned within 7 business days1
- Debts covered
- Unsecured debts such as credit cards, medical bills, department store cards and personal loans; not mortgages, car loans or federal student loans1
- Size
- 1 million+ clients and $20 billion+ resolved since 2002; 1,300+ U.S. employees in Arizona, California and Texas, per the company1
Pros
- No fees until you approve a settlement and the first payment is made
- Written guarantee to refund fees if total costs exceed your enrolled debt
- You own the FDIC-insured dedicated account and can leave any time
- Attorney network for enrolled debts that go to court, included while deposits are current
- BBB A+ and 4.6 out of 5 on Trustpilot from more than 51,000 reviews
Cons
- Fees of 15% to 25% of enrolled debt plus $9.95 a month in account fees
- Stopping payments damages your credit and can lead to lawsuits
- 2019 CFPB settlement of $25 million and a 2020 New York AG settlement
- 682 CFPB complaints in three years under Freedom Financial Network
- Forgiven debt may be taxable
Best for: People with large unsecured balances they can't pay in full, who can make steady monthly deposits for 2 to 4 years and accept the credit damage.
Skip it if: You can keep up with a debt management plan or qualify for a consolidation loan, or you need your credit intact in the next few years.
Freedom Debt Relief vs. competitors
| Company | Fee | Program length | Minimum debt | BBB | Next step |
|---|---|---|---|---|---|
| Freedom Debt Relief | 15% to 25% of enrolled debt, after settlement | 24 to 48 months on average | Not published | A+, accredited since 2015 | Visit site |
| National Debt Relief | Up to 25% of enrolled debt | 24 to 48 months | Not published | A+, accredited since 2013 | Visit site |
| Americor | 14% to 29% of enrolled debt | 24 to 48 months | $7,500 | A+, accredited since 2015 | Visit site |
| Accredited Debt Relief | 15% to 25% of enrolled debt, after settlement | 24 to 48 months | Not published | A+, accredited since 2025 | Read review |
Debt relief companies we reviewed
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Freedom Debt Relief This company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints. This review BestGuide rating: 4.2 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: People with large unsecured balances they can't pay in full, who can make steady monthly deposits for 2 to 4 years and accept the credit damage. -
Americor This company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints. BestGuide rating: 4.5 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: People with $7,500 or more in unsecured debt who cannot keep up with minimum payments and have ruled out credit counseling. -
Debt Relief Advocates This company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints. BestGuide rating: 4.5 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: People with large unsecured debts they can no longer pay who have already ruled out credit counseling and want a quote from a smaller settlement firm. -
National Debt Relief This company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints. BestGuide rating: 4.8 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: People with large unsecured balances who are already behind, cannot qualify for a lower rate, and can afford a steady monthly deposit for two to four years. -
Cambridge Credit Counseling This company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints. BestGuide rating: 4.7 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: People with steady income and credit card debt at high rates who could repay in three to five years if interest were lower. -
Credit Associates BestGuide rating: 4.5 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: People with $10,000 or more in credit card or medical debt they cannot repay, who are already behind and can stick with monthly deposits for two to four years. -
Achieve Personal Loans BestGuide rating: 4.2 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner. Best for: Borrowers with fair to good credit who want to consolidate $5,000 to $50,000 of card debt with help from a loan consultant and a direct-pay discount.
Freedom Debt Relief pricing at a glance
Freedom Debt Relief costs, as listed October 20261
| Cost | Amount | When you pay | Paid to |
|---|---|---|---|
| Settlement fee | 15% to 25% of enrolled debt | After you authorize each settlement and the first payment is made | Freedom Debt Relief |
| Dedicated account setup | $9.95 one time | At the start | Crossroads Financial Technologies |
| Dedicated account servicing | $9.95 a month | Monthly during the program | Crossroads Financial Technologies |
| Payment fees | May apply | When payments go out of the account | Crossroads Financial Technologies |
| Legal Partner Network | Included | Only while you make every deposit on time and in full | Not applicable |
Example: enrolling $30,000 at a 20% fee means $6,000 in Freedom fees plus about $490 in account fees over a 48-month program, on top of what you pay creditors. Forgiven debt may also be taxable.
Freedom Debt Relief, step by step
Free debt evaluation
A certified debt consultant reviews your debts, income and budget and checks whether settlement fits or another option, like a loan from an affiliate, would work better.
Open the dedicated account
You open an FDIC-insured account at Crossroads Financial Technologies that you own and control, and make one monthly deposit into it.
Stop paying enrolled creditors
Most clients stop paying the enrolled cards, so late fees, collection calls and credit damage follow while the account builds.
Approve settlements
Negotiators make offers once enough money has built up, usually from months 4 to 6. You approve each settlement, and the fee is charged after the first payment.
Finish or cancel
Programs average 24 to 48 months. You can quit any time in writing and get back what's left, minus fees already earned, within 7 business days.
Freedom Debt Relief legitimacy and licensing
Yes. Freedom Debt Relief, LLC is a real, licensed Debt settlement. Negotiating with creditors to accept less than the full balance as payment in full. Compare debt relief companies company in San Mateo, California (NMLS ID 1248929, registered with California’s DFPI). It says it has served more than 1 million clients since 2002, and the BBB lists its start date as March 6, 2003, with an A+ rating and accreditation since April 30, 2015. It is a subsidiary of Achieve, which handles loans; Freedom still runs the debt relief program under its own name.
Being legitimate isn’t the same as being right for you. Debt settlement works by not paying creditors while you save, which hurts your credit and can lead to lawsuits. About 682 CFPB complaints in three years were filed under Freedom Financial Network, its former parent name.
Freedom Debt Relief fees explained
Freedom charges 15% to 25% of the debt you enroll, depending on your state and the amount. It collects the fee only after you authorize a settlement and the first payment to the creditor is made, as the FTC’s Telemarketing Sales Rule requires. The fee is disclosed up front and Freedom says it won’t increase.
The Dedicated account. An account you own, held by a third party, where you save monthly deposits used to pay settlements and fees. Compare debt relief companies costs $9.95 to open and $9.95 a month, paid to Crossroads Financial Technologies. If your total settlements plus Freedom’s fees end up higher than the debt you enrolled, Freedom refunds the difference, up to 100% of the fees it collected. Debts you keep charging on after enrolling don’t count toward that guarantee.
How Freedom Debt Relief works
After a free evaluation, you open a dedicated account and make one monthly deposit, which may be less than your current minimum payments. You usually stop paying the enrolled creditors. Once the account holds enough, Freedom’s negotiators offer settlements, with the first one typically between months 4 and 6. You approve each one. Programs average 24 to 48 months.
If a creditor sues, Freedom’s Legal Partner Network of attorneys tries to settle the case. It’s included in the program while you make every deposit on time, but the attorneys don’t represent you in court.
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.
How Freedom Debt Relief Works
Freedom Debt Relief offers debt settlement program 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.
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.”
- 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.
What customers say about Freedom Debt Relief
Recurring themes across the review sites and complaint records listed above, not individual quotes.
Common praise
- Helpful, professional consultants and negotiators
- Settlements that cut balances
- Clear explanations of the process
- Relief from the stress of collection calls
Common complaints
- Hard to reach a specific agent or get progress updates
- Long waits before the first settlement
- Fees that surprised clients
- Higher deposits when more debts are enrolled
- Credit damage and lawsuits from creditors during the program
Freedom Debt Relief lawsuits and regulatory history
- CFPB, 2017 to 2019: The CFPB sued in November 2017, alleging Freedom charged fees without settling debts as promised, charged fees after consumers negotiated their own settlements, and misled people about fees and its ability to negotiate with all creditors. The July 2019 settlement required $20 million in restitution and a $5 million civil penalty. Refunds went out from October 2020 to December 2022.
- New York, 2020: The state Attorney General secured $3.6 million for more than 8,000 New Yorkers over savings claims that broke a 2011 agreement.
- Washington, 2011: About $800,000 in refunds plus $70,000 in costs over fees above the state’s 15% cap.
- Robocall class action: Freedom Financial Network and Freedom Debt Relief agreed to a $9.75 million settlement in Berman v. Freedom Financial Network (N.D. Cal.) over prerecorded telemarketing calls from May 2017 to April 2018, denying wrongdoing. The final approval hearing was set for February 2024.
Does Freedom Debt Relief hurt your credit?
Yes. Because you usually stop paying enrolled creditors, late payments, charge-offs and collection accounts show up on your credit reports, and late payments stay for up to seven years. Expect collection calls, and some creditors may sue. Settled accounts are reported as settled for less than the full balance. If you need a mortgage or car loan soon, a Debt management plan (DMP). A repayment plan set up by a credit counseling agency that consolidates payments and often lowers interest, while you repay the full balance. Compare debt relief companies or consolidation loan is usually easier on your credit.
The IRS generally treats forgiven debt as income, and creditors may send Form 1099-C. If you were insolvent, Form 982 may let you exclude some or all of it.
How to cancel Freedom Debt Relief
You can leave at any time without a termination fee. Send written notice, which can be electronic, at least 3 business days before your next scheduled deposit to stop that draft. Freedom may accept a verbal notice after verifying your identity. Whatever is left in your dedicated account, minus settlement fees already earned and the account provider’s fees, comes back to you within 7 business days. Keep a copy of your notice and the final account statement.
The rules that protect you
The FTC’s Telemarketing Sales Rule bars debt relief companies that sell by phone from charging fees before they settle a debt and you make a payment under that settlement. It also requires them to tell you how long the program takes, what it costs and the risks of stopping payments. Many states license debt settlement companies or cap their fees. Check your state attorney general or financial regulator, and file complaints with the CFPB or FTC if something goes wrong.
Alternatives to Freedom Debt Relief
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Nonprofit credit counseling (debt management plan)
An NFCC member agency can lower your interest rates and fold cards into one payment without missed payments or settlement fees.
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A similar fee cap of 25% and published average savings for clients who finish.
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If your credit is fair or better, a consolidation loan from Freedom’s sister company avoids the credit damage of settlement.
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Negotiate with creditors yourself
Many card issuers offer hardship plans or settlements directly, and you keep the 15% to 25% fee.
Next steps
Freedom Debt Relief reviews
Written by readers, read by our moderators, never edited by the company.
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Frequently asked questions
Is Freedom Debt Relief legitimate?
Yes. It is a licensed debt settlement company in San Mateo, California, BBB accredited with an A+ since 2015, and a subsidiary of Achieve. It also settled a CFPB lawsuit for $25 million in 2019.
How much does Freedom Debt Relief charge?
15% to 25% of enrolled debt, charged only after you approve a settlement and the first payment is made. The dedicated account adds $9.95 to open and $9.95 a month.
How long does Freedom Debt Relief take?
Programs average 24 to 48 months. The first settlement usually comes between months 4 and 6, depending on your deposits and debts.
Will Freedom Debt Relief lower my credit score?
Yes. Most clients stop paying enrolled creditors, so late payments and collections hit your credit reports and can stay up to seven years.
Can Freedom Debt Relief stop lawsuits?
No one can guarantee that. Creditors can sue during the program; Freedom's attorney network tries to settle enrolled debts that go to court, but it doesn't represent you in court.
What happened in the CFPB case against Freedom Debt Relief?
The CFPB sued Freedom in November 2017, alleging it charged fees without settling debts and made misleading claims. The case settled in July 2019 with $20 million in restitution to consumers and a $5 million civil penalty.
Is Freedom Debt Relief part of Achieve?
Yes. Freedom Debt Relief is a subsidiary of Achieve and still operates its own debt relief program and website.
Can I cancel Freedom Debt Relief?
Yes, at any time without a penalty. Send written notice; remaining funds minus fees already earned come back within 7 business days.
What debts does Freedom Debt Relief settle?
Unsecured debts such as credit cards, medical bills, department store cards and personal loans. It doesn't handle mortgages, auto loans or federal student loans, and takes private student loans and some business debts case by case.
Is forgiven debt taxable?
Usually. The IRS may treat canceled debt as income and creditors may send Form 1099-C. If you were insolvent, Form 982 may let you exclude it; ask a tax professional.
Sources (14)
Facts on this page come from company websites, government agencies and regulators, checked on the dates shown. Editorial standards
- Freedom Debt Relief: FAQ (accessed October 12, 2026)
- Freedom Debt Relief: Home page and disclosures (accessed October 12, 2026)
- Freedom Debt Relief: How it works (accessed October 12, 2026)
- BBB: Freedom Debt Relief, LLC (accessed October 12, 2026)
- Trustpilot: Freedom Debt Relief reviews (accessed October 12, 2026)
- CFPB Consumer Complaint Database: Freedom Financial Network (accessed October 12, 2026)
- CFPB: Payments to harmed consumers, Freedom Debt Relief (accessed October 12, 2026)
- CFPB: CFPB sues Freedom Debt Relief for misleading consumers (November 8, 2017) (accessed October 12, 2026)
- New York Attorney General: $3.6 million for New Yorkers from Freedom Debt Relief (June 23, 2020) (accessed October 12, 2026)
- Top Class Actions: Freedom Financial Network telemarketing calls $9.75M settlement (accessed October 12, 2026)
- Achieve: Understanding the relationship between Achieve and Freedom Debt Relief (accessed October 12, 2026)
- FTC: How to get out of debt (accessed October 12, 2026)
- IRS: Topic no. 431, Canceled debt, is it taxable or not? (accessed October 12, 2026)
- NFCC: National Foundation for Credit Counseling (accessed October 12, 2026)
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