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Home > Reader Questions > I Went With Freedom Debt Relief and Now I’m Getting Sued. – Danna

I Went With Freedom Debt Relief and Now I’m Getting Sued. – Danna

i had a sick daughter with 3 children–she has been in and out of hospitals–she had insurance but not enough–i have been helping her with medicene plus my own medicene. i am taking care of children, feeding,clothing, school supplies and the only way i could make it was to use my 2 credit cards–30,000– i had to go to freedom debt releif. now third parties are saying they are going to sue. i excellent credit until this.

i am broke . my daughter is trying to work–but shes type 1 dieabetic and other problems and she must have insulin to live. i am 60 and have 739.00 house payment and 491.00 for debt relief. there are forclorsures all in my neighbor hood and they tell me the value of my house is 75000.00 and i oue 101,000. i am terified

What are my options?

Danna

It’s time to put debt behind you and start dreaming about your life after debt. – Click to Tweet

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I Went With Freedom Debt Relief and Now Im Getting Sued.   Danna
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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Angelo

    Lets all keep in mind this lawsuit did not happen just because this consumer was enrolled with Freedom Debt.  Regardless if you are enrolled in a debt settlement program or taking the DIY approach, anyone who defaults is at risk of a lawsuit.  

  • Nataliek78

    Danna, I hope it has all worked out for you??? 
    I started up with FDR in November and now being sued by my bank.  Part of me feels like backing out now with FDR and handing all 3 of my creditors directly.  My credit was perfect and was NEVER late on a payment, I just couldn’t get ahead.  FDR claimed to help and alleviate the stress, now I am more stressed than ever and my credit is F_cked! I don’t know what to do.  I have to respond to the summons by the end of the week. 

    • TheFDRSurprise

      Not surprised FDR has been sued by so many states. They appear to have one of the worst reputations in the industry. did they tell you that only a small percentage of their clients actually complete the program on the sales call

    • Rob2D2

      @2a6fb7f3866d4c1f9e4d5bdf92fdf02d:disqus … When you say “couldn’t get ahead” with your credit card debt, does that mean you were only making the minimum payments? How much total debt do you have? 

  • Damon Day

    Hey Robert,

    Just like anything else, you get the good with the bad. They make money when clients file BK, so what often happens is they tend to have what I call “professional blinders” on. Since they are immersed in it every day and it is how they earn a living, there is a potential tendency to assume that when a client comes into the office that it isn’t a matter of “if” they should file BK, but rather “which chapter.”

    Now some BK attorneys I have found are very good and actually go out of their way to ensure that a client has exhausted all other possible options and that BK is definitely the right strategy. However, I do see many cases where a client will come to me after consulting with a BK attorney and my opinion might be that BK really didn’t make sense for that client.

    Of course what makes my opinion right and the BK attorney wrong? Well that is up for the client to decide. I will give all of the reasons why I believe my opinion is correct and then the client can of course act on that information and decide how to best proceed.

    As you have observed, you will certainly run into some BK attorneys that are very aggressive in pushing the BK option.

  • Robert S

    Damon or anyone else… what’s your experience with BK attorney’s? For business and personal purposes, I’ve had 4 different attorney’s and 3/4 of them were just as bad as an aggressive debt settlement company. 1 of the 4 was actually awesome, care about my situation and I think he got paid less than he was actually worth.

    Small sample size, but “the world are full of sales man” (Dr’s, Lawyers, Politicians,Govt).

  • Robert S

    I hope things got resolved… however, a few notes:

    “now third parties are saying they are going to sue.”
    —> Of course a third party is saying they are going to sue you. This has nothing to do with being signed up with Freedom. This has to do with the collection process. It may be legitimate or it may be a threat. Nonetheless, a collector must put pressure on you to attempt to get payment.

    “i excellent credit until this.”
    —> Mam, you had excellent credit and $30k in credit card debt. No one will lend to you with that amount of debt. One way or another, your credit was going to be effected (Bk, Debt Settlement). Quit focusing on your credit and focus on getting out of debt.

    There isn’t much about your program, but if you are in a 36 month program or less on this debt amount you still may be able to complete it. You can also talk to freedom about switching you to their new Fresh Start program. Else, you can file BK.

    I would recommend looking at BK if your income is less than $3,500. Also, your home is your home. If you can afford it, great. if not,the market will undoubtedly tank again and you will lose a lot more than you already have in value. On the other hand, if you are living in the house and it works for you and it affordable, do not worry about the value.

  • Robert S

    I hope things got resolved… however, a few notes:

    “now third parties are saying they are going to sue.”
    —> Of course a third party is saying they are going to sue you. This has nothing to do with being signed up with Freedom. This has to do with the collection process. It may be legitimate or it may be a threat. Nonetheless, a collector must put pressure on you to attempt to get payment.

    “i excellent credit until this.”
    —> Mam, you had excellent credit and $30k in credit card debt. No one will lend to you with that amount of debt. One way or another, your credit was going to be effected (Bk, Debt Settlement). Quit focusing on your credit and focus on getting out of debt.

    There isn’t much about your program, but if you are in a 36 month program or less on this debt amount you still may be able to complete it. You can also talk to freedom about switching you to their new Fresh Start program. Else, you can file BK.

    I would recommend looking at BK if your income is less than $3,500. Also, your home is your home. If you can afford it, great. if not,the market will undoubtedly tank again and you will lose a lot more than you already have in value. On the other hand, if you are living in the house and it works for you and it affordable, do not worry about the value.

  • Influential Friend

    Just came across this. Someone please tell me this poor woman has been helped and she has gotten her money back. This makes me RIDICULOUSLY PISSED OFF!!! If EDS or FDR doesn’t/didn’t take care of this, I will see to it that it gets handled on a federal level.

  • Influential Friend

    Just came across this. Someone please tell me this poor woman has been helped and she has gotten her money back. This makes me RIDICULOUSLY PISSED OFF!!! If EDS or FDR doesn’t/didn’t take care of this, I will see to it that it gets handled on a federal level.

  • Dinah

    I originally applied with FDR too but later found out Express Debt Settlement was handling my case. I had already sent a total monthly payments of $12,271.00 when sued by one of my credit cards for $2,317.77. I don’t know what kind of client satisfaction you would expect when you had to deal with the embarrassment of showing up in court and end up with the wage garnishment of $2,317.77.
    I had been sued by another credit card again eight months later last November. I did not get any definite plan from EDS except being told that I do not have enough funds. The president of EDS even accused me of not consistent with my payments and missed six months. Note World had erased my previous payments when I checked my account. I have bank statements showing I had been sending twice sometimes three times in a month (I guess that was being inconsistent).
    Therefore, my fellow financially Cheyne-Stoking friends… beware! There are people worse than Bernie Madoff. These people don’t prey on the rich but on the already hanging-on-a-cliff poor!

  • Dinah

    I originally applied with FDR too but later found out Express Debt Settlement was handling my case. I had already sent a total monthly payments of $12,271.00 when sued by one of my credit cards for $2,317.77. I don’t know what kind of client satisfaction you would expect when you had to deal with the embarrassment of showing up in court and end up with the wage garnishment of $2,317.77.
    I had been sued by another credit card again eight months later last November. I did not get any definite plan from EDS except being told that I do not have enough funds. The president of EDS even accused me of not consistent with my payments and missed six months. Note World had erased my previous payments when I checked my account. I have bank statements showing I had been sending twice sometimes three times in a month (I guess that was being inconsistent).
    Therefore, my fellow financially Cheyne-Stoking friends… beware! There are people worse than Bernie Madoff. These people don’t prey on the rich but on the already hanging-on-a-cliff poor!

  • Damon Day

    Hello JSW,

    I appreciate your willingness to reach out and help Danna, but with all due respect, let me suggest some things that may be helpful.

    I am a little perplexed that you are assuring her that she has made the right decision to join your program when the facts suggest she has not. From the sounds of it she is struggling every day just to make ends meet and at minimum, meeting with a bankruptcy attorney to discuss the option of filing chapter 7 should be explored. I would hope that you suggest that when you contact her.

    Second, I am assuming that she was enrolled on your old plan when you were collecting all of your fees upfront. Without having to explain why this is very damaging to Danna and why it is going to make it likely she will be sued and not have the funds to address the lawsuits, may I suggest that if she meets with a BK attorney and then still decides to stick out the settlement, you offer to grandfather her into your new fresh start program and take the fees that you have taken from her and put them back into her escrow account so if any of these creditors do sue her then she might have the funds available to address that.

    I can appreciate that you call new clients every month for 6 months to see if they have any questions, however, the phone call itself is not important, what is important is the information you are giving your clients during that call.

    Danna, please keep us updated on your situation and how the call with JSW goes.

    Also, I don’t know enough about your situation based on what you have shared, but I would suggest at least meeting with a BK attorney to explore that option. Based on your circumstances, you may find you can keep your house, wipe out the debt completely, get a fresh start and then put the 491 you are currently giving to FDR to pay much needed other bills.

    The attorney can tell you specifically what would happen if you decided to file. Hope this helps.

    http://getoutofdebt.org/Damon-

  • http://DamonDay.com Damon Day

    Hello JSW,I appreciate your willingness to reach out and help Danna, but with all due respect, let me suggest some things that may be helpful.I am a little perplexed that you are assuring her that she has made the right decision to join your program when the facts suggest she has not. From the sounds of it she is struggling every day just to make ends meet and at minimum, meeting with a bankruptcy attorney to discuss the option of filing chapter 7 should be explored. I would hope that you suggest that when you contact her.Second, I am assuming that she was enrolled on your old plan when you were collecting all of your fees upfront. Without having to explain why this is very damaging to Danna and why it is going to make it likely she will be sued and not have the funds to address the lawsuits, may I suggest that if she meets with a BK attorney and then still decides to stick out the settlement, you offer to grandfather her into your new fresh start program and take the fees that you have taken from her and put them back into her escrow account so if any of these creditors do sue her then she might have the funds available to address that.I can appreciate that you call new clients every month for 6 months to see if they have any questions, however, the phone call itself is not important, what is important is the information you are giving your clients during that call.Danna, please keep us updated on your situation and how the call with JSW goes.Also, I don’t know enough about your situation based on what you have shared, but I would suggest at least meeting with a BK attorney to explore that option. Based on your circumstances, you may find you can keep your house, wipe out the debt completely, get a fresh start and then put the 491 you are currently giving to FDR to pay much needed other bills.The attorney can tell you specifically what would happen if you decided to file. Hope this helps.

    http://getoutofdebt.org/Damon-Day

    • Robert S

      Damon or anyone else… what’s your experience with BK attorney’s? For business and personal purposes, I’ve had 4 different attorney’s and 3/4 of them were just as bad as an aggressive debt settlement company. 1 of the 4 was actually awesome, care about my situation and I think he got paid less than he was actually worth.

      Small sample size, but “the world are full of sales man” (Dr’s, Lawyers, Politicians,Govt).

      • http://DamonDay.com Damon Day

        Hey Robert,

        Just like anything else, you get the good with the bad. They make money when clients file BK, so what often happens is they tend to have what I call “professional blinders” on. Since they are immersed in it every day and it is how they earn a living, there is a potential tendency to assume that when a client comes into the office that it isn’t a matter of “if” they should file BK, but rather “which chapter.”

        Now some BK attorneys I have found are very good and actually go out of their way to ensure that a client has exhausted all other possible options and that BK is definitely the right strategy. However, I do see many cases where a client will come to me after consulting with a BK attorney and my opinion might be that BK really didn’t make sense for that client.

        Of course what makes my opinion right and the BK attorney wrong? Well that is up for the client to decide. I will give all of the reasons why I believe my opinion is correct and then the client can of course act on that information and decide how to best proceed.

        As you have observed, you will certainly run into some BK attorneys that are very aggressive in pushing the BK option.

  • JSW

    I am the Customer Service Manager with FDR. I’m very sorry to hear that you may have had a less than perfect experience with us. I assure you that customer satisfaction is my number one focus. There is no way I want you or any other client feeling anything less than 100% happy with our organization. Please allow me and my leadership team to assist you in any way that we can to make sure you feel you are receiving the best service ever! I will attempt to contact you personally this afternoon.

    Freedom Debt Relief prides itself on assisting our customers in every way that we can to make sure that you are as successful as possible in the program and you have a crystal clear understanding of your progress in our program. We love to be proactive with our clients and that is why we reach out to our clients every 30 days for the first 6 months to see if they have any questions after they enroll in our program. I assure you that you made the right decision to join our program.

  • JSW

    I am the Customer Service Manager with FDR. I’m very sorry to hear that you may have had a less than perfect experience with us. I assure you that customer satisfaction is my number one focus. There is no way I want you or any other client feeling anything less than 100% happy with our organization. Please allow me and my leadership team to assist you in any way that we can to make sure you feel you are receiving the best service ever! I will attempt to contact you personally this afternoon.

    Freedom Debt Relief prides itself on assisting our customers in every way that we can to make sure that you are as successful as possible in the program and you have a crystal clear understanding of your progress in our program. We love to be proactive with our clients and that is why we reach out to our clients every 30 days for the first 6 months to see if they have any questions after they enroll in our program. I assure you that you made the right decision to join our program.

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